Covid doesn’t pay dividends

INVESTOR PAYOUTS AT 10-YEAR LOW

INVESTORS have seen dividend payouts dive to a 10-year low as companies fight to survive the coronavirus pandemic.

Payouts by British firms halved to £18billion f rom July to September, financial data specialist Link Group said. Link now expects company dividends to drop nearly 39% to £60.4bn this year. Firms left reeling by the Covid-19 crisis have slashed, or scrapped, dividends ividends in a bid to conserve cash or as a requirement for getting Government help. p.

That has harmed investors ors of all sizes, including people saving ing into pension funds. Overall,

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such as cow dung. just under half of firms axed dividends in the three months to the end of September, while a fifth cut their value.

Banks accounted for almost two fifths of the value lost, with cuts from the oil sector worth another fifth.

However, the dividend dive in the third quarter was less than in the previous three months.

Susan Ring, of Link, said: “Our worstcase scenario has steadily steadil improved and though investors in face a historic decline in their income income, the worst is behind us.”

Pensi Pensions expert John Ralfe stressed that share p prices were more import important than dividends to pension funds and their th members. W With the FTSE 100 down 17% in th the last 12 months, th the pension pots of o f mi l l i o n s o f wo workers have been de dented.

Ralfe said: “M “Most people will be heavily invested in shares.” s