WWE: Going BANKRUPT
By “Bad” Brad Berkwitt
Motley Fool the online stock site that has all kinds of inside information is reporting today that shares of the World Wrestling Entertainment (NYSE: WWE) fell 10% after the company announced a revised dividend policy.
“When a dividend yield reaches 12.5% like WWE’s did, we should expect that something has to change”, reports Motley Fool. The company’s former $0.36 dividend will be cut to $0.12 to keep the company from running out of cash.
“WWE’s stock has been in a tailspin lately and the company has been returning more cash to shareholders than it is pulling in, so this is a prudent move in the long run”, said Motley Fool.
“It may have investors disappointed today, but it’s the right move for the company. I don’t think this presents an opportunity to jump in yet, but if Vince McMahon can turn operations around, WWE could see a nice pop in the future”, said Motley Fool.
Hopefully the WWE can get their business in order and not suffer the fate of many well known franchises that as of late, have had to file Chapter 11.