No dividend is "safe". They'll rise and fall based on the cash flow of the company. If sales continue to drop, the dividend will drop along with them. The question is how well management is handling the post "brick and motor" world. Staples has had a large web e-commerce operation for a while now, they need to figure out how to leverage their real estate - or start cutting things there. I think minus the distraction of that stupid merger management will again devote time to re imaging the company, which was going along well.
Frankly if the merger had gone through, I would have cashed out and found somewhere else to invest. At this point I am buying more.
They have not been well managed.
Ron has not had a good idea in 5 years. Europe has been and is a mess.
No - Not well managed!!
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No. This is the beginning of the divergence. Once ODP bag holders recognize their investment has a ton of debt and not enough cash flow to service the debt, game over.
If you think the end is near for staples... get out of the stock market because end is near for all companies. Staples makes money and has a very very long track record of making money and paying dividends. They are still and possibly always will be the leader in this sector servicing large contract office supplies. You need to get your facts straight before you speak. This stock is way oversold. When they are running you should be buying this kind of stock.
Why care? They make money with or without the dividend. No dividend they buy back more stock. Question is are they badly managed? I would say Staples is well managed evidence the last 10 year.