AXA IM: UK dividends set for 'fuller recovery' by 2022

'Good news' for utilities and consumer staples

Lauren Mason
clock • 3 min read

Next year will be a "better year for dividends" for those invested in UK equities while a "fuller recovery" is on the cards for 2022, according to AXA Investment Management's George Luckraft and Simon Young, who added that firms less affected by the Covid-19 pandemic will likely pay some of their deferred dividends later this year.

The managers, who head up AXA's Framlington Monthly Income and UK Equity Income funds, said it is "understandable" that firms have reduced or cancelled their dividends, given the assistance the Treasury and the Bank of England have provided this year. However, most sectors have already started to see a rebound in demand, while "pockets of strength" among UK dividend-payers such as utilities are likely to offset any widespread cuts in dividends, according to the pair. Global dividends suffer biggest quarterly fall since the Global Financial Crisis "As we go through the year, I expec...

To continue reading this article...

Join Investment Week for free

  • 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

Join now

 

Already an Investment Week
member?

Login

More on UK

Octopus Investments: UK small-caps offer once-in-a-cycle opportunity
UK

Octopus Investments: UK small-caps offer once-in-a-cycle opportunity

Higher potential dividend yields

Beth Brearley
clock 09 October 2024 • 2 min read
Deep Dive: UK dividend opportunities no longer limited to just the FTSE 100
UK

Deep Dive: UK dividend opportunities no longer limited to just the FTSE 100

Discounted valuations cannot persist

Eve Maddock-Jones
clock 27 September 2024 • 4 min read
Martin Currie's Mark Elliott: A turning point for UK equities
UK

Martin Currie's Mark Elliott: A turning point for UK equities

'Risks should not be forgotten'

Mark Elliott
clock 21 August 2024 • 4 min read
Trustpilot