New York-based S&P Dow Jones Indices will remove five companies from the S&P/TSX Canadian Dividend Aristocrats Index following its monthly dividend review.
Suncor Energy Inc., Gildan Activewear Inc., Methanex Corp., Alaris Royalty Corp. and Sleep Country Canada Holdings Inc. will be deleted from the index prior to the open of trading on June 1, a release from S&P Dow Jones said.
All five companies have altered their dividends in response to the Covid-19 pandemic.
Sleep Country Canada and Gildan both suspended quarterly dividends after reporting earnings for the most recent quarter, while private equity firm Alaris is changing its dividend payment from monthly to quarterly.
Suncor Energy Inc. cut its quarterly dividend by 55% after 18 years of consecutive annual increases. Several firms in Canada’s oil patch have made similar moves, and the Liberal government’s aid for large companies placed limits on dividends.
A report from Capital Group said dividend cuts and suspensions have jumped to the highest level in more than a decade.
Editor’s note: This article has been updated in response to a corrected press release. A previous version didn’t count Alaris among the companies to be removed from the index.