LONDON (Reuters) - Morgan Stanley warned on Thursday that European stock dividends are at a "high risk" and companies are entering cash preservation mode in light of the ongoing coronavirus crisis.
Companies have been racing to cut dividends as lockdowns of major European cities such as London, Paris and Berlin, have crushed businesses, drying up their cashflows.
"In the last week we have noted some high quality dividend stocks, oftentimes with a long and unbroken track record of 'meeting or beating' on dividends, cutting their dividends to preserve cash," Morgan Stanley equity strategists wrote.
AJ Bell estimated UK companies alone have cut a whopping 1.5 billion pounds in dividends so far this year.
(Reporting by Thyagaraju Adinarayan; Editing by Alexandra Hudson)