As businesses hunker down for a prolonged economic standstill, boards of directors in some SA companies have considered it prudent to close dividend taps and build cash buffers to withstand the Covid-19-induced downturn.
It’s annoying to shareholders. But it would be difficult to make a case for payments if it means your company will not be able to come out on the other side of the pandemic that has triggered a fight for survival even among global industry stalwarts.A subscription helps you enjoy the best of our business content every day along with benefits such as exclusive Financial Times articles, ProfileData financial data, and digital access to the Sunday Times and Times Select.
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