Which firms should pay dividends?

OVER THEThe EconomistThe Economist Today next month the toll that lockdowns are inflicting on businesses will become more visible as big Western companies report their first-quarter results and start to give investors a steer on what to expect for the rest of 2020. For some, bankruptcy beckons—this week America’s banks warned of a surge in bad debts as households and firms go bust (see ). Most companies will remain going concerns, but face a collapse in profits. As a result a fraught debate is taking place in boardrooms all over the world about whether firms should cut their dividends, the recurring payments they make to their owners.