Prudential Financial Inc. says it will continue to pay an annual dividend this year.
Prudential, Newark, N.J., will reduce the dividend to 58 cents per common share, from $1.15.
Prudential will pay the dividend Dec. 19 to shareholders who hold its stock when the business day ends Nov. 24.
Making the dividend cut "was a prudent move given uncertain and difficult equity/credit market conditions," Andrew Kligerman, an analyst at UBS Investment Research, New York, writes in a comment.
The cut will save Prudential about $240 million in cash this year, Kligerman says.
Kligerman notes that Prudential has solid liquidity and is eligible for federal bailout money because it is a savings and loan holding company.
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