Dividends are a portion of the company's profit paid out to shareholders. What affects dividends is cashflow. Changes in profitability and costs affect the dividend payout. Changes in share price, however, do not affect these.
The recent cases of companies announcing dividend cuts during the market downturn are not due to falling share price, but due to fall in earnings due to the pandemic.
No, it shouldn't.
Dividends are a portion of the company's profit paid out to shareholders. What affects dividends is cashflow. Changes in profitability and costs affect the dividend payout. Changes in share price, however, do not affect these.
The recent cases of companies announcing dividend cuts during the market downturn are not due to falling share price, but due to fall in earnings due to the pandemic.