Lost dividends are gone forever, as only one-third will return in the next six years, with investors expecting 2020 payments to be cut in half
- Two-thirds of missing payments deleted due to cornavirus could be lost forever
- Investors expect total payments from blue chip companies to halve this year
Only a third of the dividends paid for the coronavirus will return over the next six years, according to forecasts.
Markets betting on the future value of dividends paid by FTSE 100 companies indicate that two-thirds of the missing payments could be lost forever.
Ian Williams, economic analyst with broker Peel Hunt, said, “This could signal a fundamental overhaul of our expectations for future corporate dividends.
Markets betting on the future value of dividends paid by FTSE 100 companies indicate that two-thirds of the missing payments could be lost forever
“Dividends paid will not necessarily top the list for many companies after this period. They will focus on paying their staff and getting things back to normal. “
The giants of the FTSE 100 have cut their dividends by counting the enormous cost of enforcing a corporate economic lockdown.
Investors expect the total dividends paid by blue chip companies to halve this year.
Williams warned that further cuts could occur if oil majors BP and Shell – some of the biggest dividend payers in Britain – decide to cut their payments.