May 30--Along with employees, vendors and subcontractors, investors also took a huge pay cut from corporate America this year.

As public companies seek to preserve cash amid the worst economic recession in decades, they slashed about $77 billion in dividend payments to shareholders in the first quarter, according to Standard & Poor's.

From giants like General Electric to snowmobile maker Arctic Cat, CEOs and their boards have agonized over cutting dividends or eliminating them altogether. Many long-term investors such as retirees and foundations rely on dividend income, so cuts or suspensions can have a significant impact on lifestyles and program budgets.

"The decision to reduce our quarterly dividend was thoughtfully considered and very difficult, given the importance of the dividend to our shareholders," U.S. Bancorp CEO Richard Davis acknowledged in March. "It was, however, the right decision, as our industry continues to confront uncertainty in the financial markets and a weakening economy." USB, a healthy bank by today's standards, slashed its quarterly investor payout by nearly 90 percent to 5 cents per share.

In February, General Electric Co. -- the classic widows-and-orphans stock -- cut its dividend for the first time since 1938, a move that will save the company about $9 billion a year.

The January to March period marked the first quarter since Standard & Poor's started recording dividend data in 1955 that the number of dividend cuts was greater than the number of dividend increases. A record low 283 companies announced dividend increases in the first quarter of 2009.

"While the number of dividend decreases is at a record high, the number of increases has set a new record low," said S&P senior index analyst Howard Silverblatt in April. "Since 1955, the average has been 15 increases for every decrease. Now its three increases for every four decreases."

Minnesota firms are faring somewhat better. So far this year 10 Minnesota-based companies have increased their dividends among 44 that paid them at the beginning of the year, while five companies have cut them.

In addition to U.S. Bancorp, TCF Financial cut its quarterly dividend from 25 cents to 5 cents per share. To an extent, Davis and TCF CEO Bill Cooper have blamed strings attached to the federal government's eight-month old bank-relief investment program and a complacent Federal Reserve for the financial service industry's distressed condition. Regardless, both banks also have had to take large write-downs on their own loan portfolios.