Power Alley Update: Bayer Effectively “Vanishes” Its Cash Dividend… Whoa.

The idea of an old line pharma company effectively ending its dividend is… radical.

I highly doubt this will spread (as any sort of trend), as it is clearly-specific as a financial challenge — to this company’s Roundup litigation woes. But we will keep an eye on it, just the same:

…Bayer AG is planning to slash its dividend by 95% in an effort to pay down debt as the German company looks to recover from multiple crises including a wave of litigation over Roundup herbicide.

Bayer will present a plan to offer investors 11 euro cents ($0.12) per share for fiscal year 2023, down from €2.40 last year, according to a statement Monday….

Now you know. But pharmas have always been dividend kings. Likely to decline in the coming days — by about 20% — so, maybe not so much of a king, any longer.

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