FTSE 100 Firms Face Dividend Cuts, Strategists Warn

Investors should prepare for dividend cuts in FTSE 100 companies in the second half of the year, market strategists at IG Group warned

Karen Kwok 6 July, 2016 | 4:23PM

Top market strategists today warned UK investors that some of the largest holdings in the FTSE 100 could face dividend cuts in the second half of the year.

“If you are chasing yields in the stock market at the moment, you should expect an environment where those yields will be cut, at least in the short term,” said Chris Beauchamp, senior market analyst at IG Group, the London-based spread betting trading firm.

He said some of these companies were offering yields way above the average in the index and they were not sustainable.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Associated British Foods PLC1,945.00 GBX-1.52
Berkeley Group Holdings (The) PLC4,431.00 GBX0.70
GlaxoSmithKline PLC1,575.00 GBX-1.12
HSBC Holdings PLC377.80 GBX1.21
InterContinental Hotels Group PLC3,774.00 GBX1.45
Legal & General Group PLC220.40 GBX3.62
Marks & Spencer Group PLC96.00 GBX1.18
Rio Tinto PLC4,616.00 GBX0.09
Royal Dutch Shell PLC B1,188.80 GBX0.64

About Author

Karen Kwok

Karen Kwok  is a Reporter for Morningstar.co.uk

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