Newell Brands Needs To Cut The Dividend
Newell Brands is facing significant financial challenges, trading near all-time lows with a high dividend yield. The company's dividend is not well-supported by its cash flow, prompting suggestions for a cut to alleviate financial pressure. Strategic asset sales or a dividend reduction are deemed necessary to improve the company's financial health as it approaches upcoming debt maturities.
- ▪Newell Brands is currently experiencing a 7.7% dividend yield and high leverage with $4.76 billion in net debt.
- ▪The company's dividend is barely covered by free cash flow, indicating a need for a reduction.
- ▪Only the Learning & Development segment is profitable, while other segments are generating losses.
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