JPMorgan cuts its dividend fom 38 to 5 cents

From MarketWatch:

J.P. Morgan Chase said late Monday that its board cut the company’s quarterly dividend to 5 cents from 38 cents, effective for the dividend payable April 30. “The board anticipates maintaining this level for the time being. This action will enable the company to retain an additional $5 billion in common equity per year,” the financial firm said in a statement. Shareholders of record on April 6 are eligible to receive the dividend. J.P. Morgan also said its first-quarter financial performance to date is solidly profitable even after significant additions to reserves, and the outlook for the quarter is roughly in line with analyst expectations. Analysts surveyed by FactSet Research are forecasting J.P. Morgan to earn 34 cents a share on revenue of $21.93 billion in the first quarter.

If you recall, a few days ago I posted a video of Meredith Whitney saying this was going to happen. She continues to make very good calls on the financials.

I see this as a net positive for JPMorgan because it demonstrates that they do not want to be nationalized and are looking for ways to conserve capital.