Is a company allowed to reduce its dividends?  Yes. Companies
have no restrictions - not from their exchange (NYSE, Nasdaq,
AMEX, etc.), the SEC or the NASD - that require them to maintain
a certain dividend level.  However, it should be noted that the
market often views a company's dividend reduction as a negative
sign, which could result in a drop in the price of the company.
For more on dividends, check out How Dividends Work for
Investors and What is the incentive to buy a stock without
dividends?  comments powered by Disqus Trading Center