Intel and Walgreens face dividend cuts due to VYM index tracking
- Reports
- 2
- Developments
- 1
- Repetition
- 50%
New informationRepeats or wire copies
What happened
Intel and Walgreens announced dividend cuts as they were included in the VYM index. Intel previously slashed its quarterly dividend from $0.37 to $0.13 in early 2023. The cuts occurred on September 23, 2026.
From aol.com
Why it matters
The Vanguard High Dividend Yield ETF (VYM) tracks the FTSE High Dividend Yield Index, which selects stocks based on projected 12-month dividend yield. According to reports, this design choice can lead to buying stocks where dividend cuts are hidden, as a stock's forward yield spikes when its price collapses because the payout is deemed unsustainable.
From aol.com
Who's involved
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- IntelSpeculative
Intel might face financial pressure and reduced shareholder funding due to the dividend cuts.
- Intel FoundrySpeculative
Intel Foundry could see its operational costs or revenue tied to the financial health of Intel Corporation.