Capital One (COF) today joined the growing list of major corporations drastically cutting their dividends. In fact, since the start of 2009, $40.8 billion less in dividend income will flow to investors thanks to dividend cuts by 41 corporations so far. Dividend cuts in the first quarter of 2009 total more than in all of 2008, when dividend income cuts by 61 companies meant shareholder income dropped $40.6 billion.
"We expect decreases to continue as companies take the prudent steps to preserve cash that assist in their ability to ride out the recession," Howard Silverblatt, senior analyst at S&P, told the Los Angeles Times. He expects more cuts are coming.