Celanese Cuts Its Dividend And Investors Cut Their Losses
Portfolio Pulse from
Celanese has temporarily suspended its quarterly dividend after 19 years, due to high debt levels and industry challenges. The company aims to generate $800M-$900M in annual free cash flow, but a dividend return is unlikely before 2027. Weak demand in key sectors and oversupply issues are impacting profitability.
February 08, 2025 | 9:00 am
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Celanese has suspended its quarterly dividend due to high debt and industry challenges, impacting investor sentiment. A dividend return is unlikely before 2027.
The suspension of dividends after 19 years is a significant negative signal for investors, indicating financial strain. The company's high debt levels and industry challenges, such as weak demand and oversupply, further exacerbate the situation. This news is likely to lead to a short-term decline in Celanese's stock price as investors react to the loss of dividend income and uncertainty about future profitability.
CONFIDENCE 95
IMPORTANCE 90
RELEVANCE 100