Where Next for UK Dividends?

Recession means many UK companies will take time to restore their payouts, but the 3% yield from the FTSE looks attractive

Holly Black 2 February, 2021 | 9:51AM

Pound notes

Dividends have taken their biggest hit since World War II, say experts at Link Group, but things should improve from here. The firm, which authors a quarterly dividend monitor report outlining the state of UK dividends, warns it could be five years before income payments from British businesses get back to where they were before the Covid-19 pandemic struck.

“We are in the middle of the worst recession in history, and that’s the backdrop against which companies have to decide what to pay their shareholders,” says Mark Baker, head of research at agency Team Spirit.

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About Author

Holly Black  is Senior Editor, Morningstar.co.uk

 

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