Why Transocean Slashed Its Dividend

While the company has a relatively healthy cash position - which stood at $2.87 billion as of Q3 2014 - continuing to pay dividends to the tune of $1.1 billion per year would have been unsustainable, and likely would have hurt the company's credit rating. The previous dividends were also not optimal from a capital allocation standpoint. The company's stock price is down by close to 55% over the past year and its trailing twelve month dividend yield - with the $3 dividend - would stand at over 15...