Dividend.com: Ambac Drops Payout

Ambac Financial Group Suspends Dividend

Bond insurance firm Ambac Financial(ABK Quote) announced late Wednesday that it will terminate its dividend payouts, effective immediately.

The company said the dividend suspension will save $11.5 million annually and help assuage its liquidity problems. The company had previously reduced its dividend to a penny per quarter.

Ambac stock is down over 94% on the year, as the company has struggled to stay afloat amid record losses and liquidity concerns. Back in November, Moody's cut its ratings on the bond insurer, citing several financial woes.

Due to the dividend suspension, we will henceforth be dropping coverage of Ambac.

AT&T Announces Plans to Cut 12,000 Jobs

AT&T(T Quote) announced Thursday that it plans to cut about 12,000 jobs, or 4% of its total workforce.

The company cited economic pressures, combined with a shifting business focus and a desire to streamline its organizational structure. AT&T is now focusing on its growing wireless phone business, as customers continue to shed traditional land-line phones in favor of mobile devices.

The company expects the job cuts to be realized throughout 2009 and will take a nearly $600 million charge associated with severance packages related to the layoffs.

Shares of AT&T fell 74 cents, or 2.5%, in early afternoon trading Thursday.

We began recommending AT&T on Oct. 28, at a price of $24.39. The company currently has a dividend yield of 5.5%, based on last night's closing price of $29.08.

The job cuts just keep on coming, with mroe than 1 million Americans losing their jobs to date this year. Consumers and businesses alike are curbing their expenditures, which will continue to affect many companies, which will need to cut expenses to make up for lower revenues.