Dividends from UK companies may not yet be as rare as hen’s teeth, but the income landscape for most investors has changed beyond recognition since the coronavirus struck. More down than up in terms of trajectory.
According to investment experts at AJ Bell, dividend payments from the country’s 100 largest stock market-listed companies are likely to plunge by a quarter this year – from £75billion to £57billion.
Some 35 of these companies have already either cut, deferred or cancelled their dividends while they grapple with the impact of coronavirus, with nine not paying a penny in income to shareholders.
A raft of companies previously renowned for their dividend-friendliness – tobacco giant Imperial Brands, HSBC, BP and Shell – have all taken an axe to dividends.