Omnicom (OMC) reported earnings this morning. Despite unprecedented headwinds facing the advertising market due to the coronavirus pandemic, management reaffirmed the company's commitment to its dividend: Our liquidity, balance sheet, and credit ratings remain very strong, and we have no plans to change our dividend policy.  Omnicom recorded 3% organic revenue growth in January and February, but revenue declined by 3% in March as global shutdowns caused companies to slash their marketing expenditures. The advertising agency expects a severe double-digit decline in sales in the second quarter, and while visibility remains extremely limited, management believes trends in the second half of the year won't be as bad since economies will continue reopening.

United Parcel Service (UPS) has paid a stable or growing dividend for nearly 50 years. Despite COVID-19, management on Tuesday said that trend is expected to continue: Our dividend remains a high priority and is a hallmark of our financial strength. We are confident our actions will continue to enable us to fund the business and support shareowner interest. UPS's first-quarter earnings report showed 5% revenue growth but a 10% decline in adjusted EPS as lower-margin home deliveries swelled to nearly 70% of the firm's package volume by late March (up from around 50% historically). Compared to commercial business deliveries, which fell significantly as nonessential stores were forced to temporarily close, residential packages are smaller (lower price) and require more frequent stops, [...]

The outbreak of the novel coronavirus is coming head-to-head with Stryker's 28-year track record of paying uninterrupted dividends. Stryker (SYK) designs and manufactures devices and supplies used in a wide variety of medical procedures. 73% of Stryker's sales are generated in the U.S. In March, the Centers for Medicare and Medicaid Services (CMS) recommended that elective surgeries and other non-essential medical procedures be postponed in order for hospitals to preserve space and equipment for COVID-19 patients. Recently, many hospitals have begun resuming non-essential procedures. But it's possible, if not likely, that many people will continue to avoid hospitals to reduce their risk of exposure to the coronavirus. So far, the shock to sales of many medical supplies has been extraordinary.

On March 19, we wrote the following about Simon's (SPG) Dividend Safety Score:  The risk to Simon's dividend hinges largely on how long store closures persist and how optimistic management is about retail performance once stores reopen. A further downgrade to Unsafe could be issued quickly if closures appear they will last longer or if widespread rent defaults become likely. The outlook for extended store closures and rent collections has materially weakened since then. We expect this to pressure Simon's ability to cover its dividend, protect its balance sheet, and invest in its necessary redevelopment projects. As a result, we are downgrading Simon's Dividend Safety Score from Borderline Safe to Unsafe and believe it would be prudent for management to reduce the dividend substantially, perhaps as soon as [...]