Two months ago, Dow Chemical
Dow joins a growing list of blue-chip names that have been forced to cut (or virtually eliminate) their dividends, including Pfizer
It made sense when I said it …
Admittedly, things have changed since Liveris' statement: Kuwait's state oil business pulled out of a joint venture with Dow, taking with it the promise of $7.5 billion in financing. That caused Dow to miss a milestone in its proposed takeover of Rohm & Haas
However, Mr. Liveris was insistent that he wouldn't need the funds from the joint venture to complete the takeover, banking on $4 billion in financing from Berkshire Hathaway
Mr. Liveris really should have known better than to make such a fragile promise in this environment. After all, circumstances are apt to change rapidly and unexpectedly in the worst financial crisis since the Great Depression.
Dividend cuts can strike at any time
Dividend investors need to carefully validate any executive's promises to maintain a company's dividend right now. CEOs can be fickle creatures, particularly once they paint themselves into a corner trying to avoid any of several unpalatable options. Will General Electric's
Further (far more palatable) Foolishness: