Managing Your Money 

Invest in growth for income

Invest in growth for income

This year has been dire for equity income investors as companies have slashed dividends in a bid to conserve cash amid the coronavirus pandemic, on top of a drop in oil prices. UK dividend stalwarts such as Royal Dutch Shell (RDSB), HSBC (HSBA), Royal Bank of Scotland (RBS), Lloyds Banking (LLOY) and BT (BT.A) have suspended or reduced their dividend payments. Asset manager Janus Henderson Investors estimates that 36 per cent of all dividends payments in the UK have been cut and a further 9 per cent look vulnerable this year. And globally, the company predicts a worst-case scenario of dividend declines of 35 per cent, with the biggest cuts in the UK and Europe, although it expects that US and Asian dividends will prove to be more resilient. 

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