More than 600,000 small investors in British Gas-owner Centrica will lose out after it cancelled its £204million dividend in the face of the coronavirus crisis.
Thousands more shareholders in British Airways-owner IAG were also left disappointed as it axed its £301million payout to conserve cash.
And Bunzl, which sells products such as toilet paper, disposable cutlery and cups and safety gear to offices and factories, announced that, for the first time in 27 years, it will not pay a dividend due to ‘heightened uncertainty’.
As a host of other companies also cut their dividends, including Landsec, Saga, Wood Group, Robert Walters, Hotel Chocolat, M&C Saatchi, Serco and Close Brothers, bosses faced fresh calls to ‘share the pain’ and also cut pay.
Willie Walsh, boss of IAG, has already volunteered a 20 per cent pay cut. City figures urged others to follow suit.
Sue Noffke, head of UK equities at Schroders, said: ‘We would expect management to share in some of the pain.’
Almost £1billion of dividends were cut yesterday, bringing the total which investors have now lost out on to £16.4billion since the beginning of the year.
An eyewatering 195 listed companies, including 23 on Britain’s FTSE100 index of leading companies, have abandoned their recent payouts.
Charles Hall, head of research at broker Peel Hunt, said: ‘Investors looking for income will have to work especially hard to find it over the coming months.’
The extent of the dividend cuts across the stock market has riled some investors, many of whom rely on the payments for an income.
Chris Cummings, of the Investment Association, a trade body for major institutional investors, said: ‘Shareholders would expect companies to restart them as soon as it is prudent to do so.’