It may be a big headline, but I contend that it isn't a big deal.
Many companies cut or suspended their dividend at the onset of the virus. Given the uncertainties posed by the virus, it is just smart business to conserve cash. Giving out dividends just to keep a historical track record doesn't make much sense, especially if there are a lot of significant unknowns in the future.
Sure, investors would really like to have that cash dividend, but isn't having a long-term viable company more important?
A lot of companies drew down their credit lines and expanded their long term debt. That's a smart move too. Why not have the cash in hand if needed instead of begging for cash when the "credit window" potentially shuts? The cost of cash is marginal at this point. I would look at the cost of holding that cash as an "insurance policy". When things improve and the future looks clearer, just pay it back and cancel the insurance policy. Also, if opportunities to pick up deals or pursue projects that have significant payoffs arise, the money is in hand!
Be smart, be well-read and be successful!
