Another precinct is passing in its results.
After scrambling to hoard cash in the spring, some large US companies that halted their dividend payments are reversing their decision, a sign that their leaders believe the worst of the crisis is behind them.
Mark Zandi, Chief Economist at Moody’s Analytics:
The resumption of corporate dividend payments is an encouraging sign that executives believe that the pandemic will soon be behind us.
[Kohl’s r]evenue fell 14%, compared with a 23% drop in the previous quarter. Kohl’s said it would resume its dividend in the first half of 2021.
Retailer TJX Cos said last week that it would resume its dividend, but at a 13% higher rate than it last paid in March, citing its cash flow and $10.6 billion in cash on its balance sheet. The company has reopened most of the TJ Maxx, Marshalls, and HomeGoods stores it had closed in the spring.
“We are very bullish on the longer-term outlook because that feels significantly better than it did at the beginning of [the third quarter] when we didn’t know where all of this was heading,” CEO Ernie Herrman said on a conference call.
Those are just a few of the myriad illustrative examples that aggregate into the trend. It’s time the bureaucrats in our governments, at all levels of jurisdiction, stopped abusing their authority and stopped their panicky responses to the Wuhan Virus situation.