JPMorgan Chase slashes dividend to 5 cents

NEW YORK -- The cut takes effect with its April 30 payout to shareholders of record on April 6.

Chief Executive Jamie Dimon says the cut is a precautionary measure to ensure the company has flexibility if economic conditions get much worse.

JPMorgan Chase said its first-quarter performance to-date is "solidly profitable" — even after additions to reserves — and its quarterly outlook is roughly consistent with analysts' expectations.

Dimon said the dividend action is not directly related to the Troubled Asset Relief Program, although it helps position the company to repay the money.