Replies to post #449619 on Zeev's Turnips Patch-No Politics (ZEEV)

[madrose1]

GM If GM's big yield vanishes, investors may do the same - WSJ (21.86 )

The Wall Street Journal reports one of the last solid reasons to own shares of General Motors (GM) may soon vanish. On Tuesday, investor Kirk Kerkorian's top lieutenant, Jerome York, urged the co to slash its generous dividend, which amounts to a yield of more than 9%. The pressure from Mr. Kerkorian's camp, owners of 7.8% of GM's shares, comes on top of similar entreaties by the company's union to trim the dividend to save money. Separately, some large holders of the auto maker's bonds -- whose credit ratings have been cut to below investment grade, or "junk" status -- are raising their own concerns about the dividend size and say they may do something about it. It all means that the dividend, which was arguably the last carrot for investors, could shrink or even disappear.