“Corona” prompts listed companies to withhold and reduce their dividends

“Corona” prompts listed companies to withhold and reduce their dividends

Reda Mosallam, the partner and general manager of “Truth” for economic and management consultancy, described the dividends as a safe haven for investors with their anticipation throughout the year, indicating that some companies may resort to precautionary measures regarding distributions, which is subject to the approval of the general assemblies. He attributed the withholding of distributions or reducing them by companies’ boards of directors to the current circumstances that require caution and maintaining liquidity to pump them into projects and cover operating expenses, stressing that reducing the distribution may be a lesser measure for shareholders than withholding them permanently.

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