The Big Theme 

Alternative investment trusts for the dividend drought

Alternative investment trusts for the dividend drought

Some 45 per cent of UK companies had scrapped their dividends by 5 April and the situation is likely to deteriorate. Financial services provider Link Group predicts that in the worst-case scenario UK dividend payments could fall by 51 per cent over the course of 2020. However, investors who rely on their investments for income may still be able to get it from equity income trusts, as we explained in the Big Theme of 3 April, a number of which should be able to maintain dividends for the time being by drawing on their revenue reserves.

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