Shares of Ingersoll-Rand ( IR) are down over 3% in early trading after the company's board of directors authorized a reduction in the quarterly common stock dividend to 7 cents per share from 18 cents effective with the September 2009 dividend payment. Management said the reduced payment will enhance liquidity as well as its ability to pay down debt in the short term and make investments for future growth. We had removed shares of Ingersoll-Rand from our "Recommended" list back on Aug. 6 when the stock traded at $36.69. The company has a 4.62% dividend yield based on last night's closing stock price of $15.59. The company does have technical support in the $11 to $12 price area. If the shares can rebound, we see overhead resistance around the $17 to $18 levels. We would remain on the sidelines. Ingersoll-Rand is not recommended at this time, holding a Dividend.com Rating of 2.8 out of 5 stars.
KLA Tencor Cuts Another 10% of Workforce
Shares of KLA Tencor ( KLAC) are up slightly in early trading after the company announced it will reduce its global workforce by approximately 10%, following a 10% cut of employees back in November. The semiconductor equipment-maker said it needs to further reduce its operating expenses to respond to the current demand environment. The company plans additional forced time off and a reduction in employee stock-purchase plan benefits. The company recently reported a second-quarter loss of $434.3 million or $2.57 per share, down from a profit of $83.9 million or 45 cents per share in the same period a year earlier.