Anyone running an equity portfolio for income should currently be asking one question above all others – how much income is my fund likely to produce in 2021? After the miseries of 2020 – a year when, for a while, dividends disappeared faster than seemed humanly possible – it is the unknown that looms largest.
Fifty two of the FTSE 100 index companies axed or cut their payouts in 2020 and those contributed to 354 of the All-Share index’s 613 constituents doing likewise. In the process, monies distributed by London’s quoted companies fell by something over 40 per cent on the year, but at least this provides the base for a spirited rebound this year.
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