Yes. Companies have no restrictions - not from their exchange (NYSE, Nasdaq, AMEX, etc.), the SEC or the NASD - that require them to maintain a certain dividend level.

However, it should be noted that the market often views a company's dividend reduction as a negative sign, which could result in a drop in the price of the company.

For more on dividends, check out How Dividends Work for Investors and What is the incentive to buy a stock without dividends?

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  4. Are dividends considered an asset?

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  5. Are dividends considered passive or ordinary income?

    Despite the fact that earning dividends requires no active participation on the part of the shareholder, they do not meet ... Read Full Answer >>
  6. Is dividend income taxable?

    Dividend income is taxable but it is taxed in different ways depending on whether the dividends are qualified or nonqualified. ... Read Full Answer >>
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