Citi's Dividend Dilemma

The buzz on Wall Street is that the financial giant will cut its payout. But that may not be such a bad thing for the stock

Another day, another drubbing for Citigroup (C). The financial giant took yet another hammering from investors on Dec. 27 after Goldman Sachs (GS) boosted its estimate of Citi's asset writedowns for the fourth quarter by 70% and predicted the firm would have to cut its dividend by 40% in 2008 to preserve capital.

To continue reading this article you must be a Bloomberg Professional Service Subscriber.