Dividend Cuts Top GBP30 Billion, Says Peel Hunt -- Financial News
June 15 2020 - 9:09AM
Dow Jones News
By Ryan Weeks
Of Financial News
The value of dividend cancellations in 2020 has risen to 31.6
billion pounds ($39.62 billion), according to an analysis by Peel
Hunt, the boutique investment bank.
Of that total, GBP26.5 billion comes from cancellations made by
FTSE 100 firms, with a further GBP4.6 billion from FTSE 250
companies, Peel Hunt said in a research note Monday.
The cuts affect a wide variety of shareholders, from those
invested in banks, such as Lloyds Banking Group PLC and HSBC
Holdings PLC, to investors in telecommunications group BT Group
PLC, fashion firm Next PLC and BAE Systems PLC, the defense
company.
The firm also identified the FTSE 100 and FTSE 250 firms which
it sees as likely to pay dividends in 2020 that are "similar to or
higher than" last year's pay-outs.
This list included several financial services firms, including
Hargreaves Lansdown PLC, London Stock Exchange Group PLC and
Schroders PLC.
In all, some GBP29 billion in dividend payments are due to be
made before the end of the year by 76 FTSE 100 and 109 FTSE 250
firms.
Peel Hunt's analysts said: "While the pace of change in the
cancelled and cut dividends has slowed materially, this has more to
do with the quieter reporting schedule."
"With GBP29 billion worth of dividends still to be decided on
for CY20 payments, the market will focus back on the story with the
late summer results season."
The value of committed dividend payments for 2020 comes to
GBP11.4 billion, with another GBP4.7 billion due in June and
July.
During the coronavirus pandemic and subsequent lockdown, many
firms have been forced to cancel dividend payments to help see them
through the crisis. By April, a quarter of U.K. companies had taken
the step.
U.K. banks halted dividend payments in March after effectively
being told to do so by the Bank of England.
Website: www.fnlondon.com
(END) Dow Jones Newswires
June 15, 2020 08:54 ET (12:54 GMT)
Copyright (c) 2020 Dow Jones & Company, Inc.
FTSE 100
Index Chart
From Aug 2024 to Sep 2024
FTSE 100
Index Chart
From Sep 2023 to Sep 2024