Gannett Cuts Dividend 90 Percent; So Much for the 44 Percent Yield

Surprising no one, Gannett (GCI) this afternoon cut its quarterly dividend rate to four cents from 40 cents, a reduction of 90 percent.

The publisher of USA Today and other newspapers said the move is “another prudent response to the full-fledged recessions in the U.S. and the U.K. and the continuing difficulties in the credit market.” Gannett says the move will free up $325 million in cash to pay down debt.

I would note that at the old rate, GCI shares had a yield of 44 percent. And of course, the only time stocks offer a yield of 44 percent is when investors know the current rate isn’t going to last.

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