Neil Woodford has predicted dividends will be cut across the oil, industrials and banking sectors this year in the "next chapter in an already difficult market".
The veteran manager and founder of Woodford Investment Management (pictured) said the market's overall yield is being distorted by unrealistic dividends in these sectors, which have not yet been cut in line with fallen prices. According to joint research by Bloomberg and Woodford IM, a number of stocks in the basic materials, oil & gas and telecommunications industries are currently delivering unsustainable dividends, with last year's dividend commitments exceeding this year's earnings forecasts. "Dividend cuts form the next chapter in an already difficult market environment," said Wo...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
