Managing Your Money 

The deficit threat to dividends

The deficit threat to dividends

Last month Lord Richard Balfe introduced a bill to the House of Lords that proposed requiring approval from the Pensions Regulator and pension scheme trustees before corporate dividends could be agreed. The dissolution of parliament prevented the Lords from taking a vote on the amendment, but the Conservative peer’s proposal represents the latest step in a surging antipathy among politicians, commentators and activists towards dividend policies that continue to reward shareholders while defined-benefit (DB) pension schemes remain in deficit. It must not evade the attention of income investors.

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