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[ DIVIDEND CUTS ]
Rebecca Jones weighs up the
options for income-seekers now
their UK dividend love story is
over
Divid-end
of the affair
The Covid-19 pandemic
currently ravaging the
globe has dealt a blow
to investors of every ilk,
though perhaps none more so than
those in search of income. As of 5
April, 45 per cent of dividend-paying
companies in the UK had cut their
shareholder payouts, with banks
withdrawing the lion’s share of
income from the FTSE 100 following
pressure from the government and
regulators. With the Investment
Association having scrapped the
yield requirement for both the IA UK
Equity Income and Global Equity
Income sectors, the prognosis is not
good for anyone relying on dividends.
Richard Hunter, head of markets at
interactive investor, expects the FTSE
100’s average yield to halve to around
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