5 FTSE 100 Stocks Who Have Dropped Their Dividend

These five UK companies used to pay dividends to their shareholders, but have cut their pay-out entirely in recent years

Emma Wall 14 February, 2017 | 4:30PM
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Tesco (TSCO)

Equity analysts think there has been a permanent change in the competitive environment in the U.K. with the onslaught of the hard discounters, whose market share is structurally increasing, helped by an aggressive store opening program, customers' search for low prices and hard discount's small, amenable store format. This new channel is better satisfying customers' requirements for shopping more regularly for fresh produce but spending less on each trip, with a preference for more local and convenience formats.

New management have had the courage to make hard choices to rebuild the business; there is improved capital discipline, and prices in the U.K. have been slashed. The dividend has been suspended, inventory is down and the race to open U.K. stores has ended. 

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Anglo American PLC2,463.50 GBX-4.92Rating
Glencore PLC314.83 GBX-3.78Rating
NatWest Group PLC207.50 GBX-2.58Rating
Standard Chartered PLC411.00 GBX-7.01Rating
Tesco PLC253.80 GBX-0.84Rating

About Author

Emma Wall  is former Senior International Editor for Morningstar

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