Can we predict dividend cuts?

•I examine the predictability of dividend cuts using a large dataset of US firms from 1971 to 2014.•The longer the time interval between dividend announcements, the larger the probability of a dividend cut.•Early announcements increase the probability of an increase in the dividend per share.•These results are consistent with the view that firms delay the release of bad news.

I examine the predictability of dividend cuts based on the time interval between dividend announcement dates using a large dataset of US firms from 1971 to 2014. The longer the time interval between dividend announcements, the larger the probability of a cut in the dividend per share, consistent with the view that firms delay the release of bad news.