Lost dividends ‘gone forever’ as just one third will return over the next six years
- Two-thirds of the missing payouts axed due to cornavirus could be lost forever
- Investors expect total divi payouts from blue-chip firms to fall by half this year
Just one-third of the dividend payouts axed due to coronavirus will return over the next six years, forecasts show.
Markets which bet on the future value of dividends paid by FTSE 100 companies indicate that two-thirds of the missing payouts could be lost forever.
Ian Williams, economic analyst at broker Peel Hunt, said: ‘This could signal a fundamental rebasing of our expectations for dividends from companies in the future.
Markets which bet on the future value of dividends paid by FTSE 100 companies indicate that two-thirds of the missing payouts could be lost forever
‘Dividend payouts will not necessarily be high up the list for many companies after this period. They will focus on paying their staff and getting back to normal.’
FTSE 100 giants have been slashing their dividends as they count the massive cost of enforcing an economic lockdown on businesses.
Investors are expecting total dividend payouts from the blue-chip firms to fall by half this year.
Williams warned that more cuts could come if oil majors BP and Shell – some of the biggest dividend payers in Britain – decide to reduce their payouts.