After record dividends, cuts and suspensions are re-shaping income stocks

Howard Silverblatt of SP Dow Jones Indexes says that after a record first quarter for dividend payouts -- in which $127 billion in distributions were made -- income-producing stocks have seen a dramatically changed landscape as the COVID-19 pandemic took hold. As precautions ramped up, 13 companies cut or suspended dividend payments that would have totaled roughly $14 billion in March. That trend of dividend reductions and shutdowns is just beginning, Silverblatt says, noting that investors should expect reduced payouts and that stock buybacks will be rare for the foreseeable future. Also on the show, author Gerald Posner talks about the pharmaceuticals industry and its changing future when the viral economy subsides, former SEC director Norm Champ talks about how individuals can better ride out the chaos of the crumbling economy, and Chuck answers an audience member's question about a popular fund whose manager was recently on the show as a guest.