The UK equity income sector has been through a turbulent and challenging 18 months.
The sector experienced the worst series of dividend cuts last year since the 1970s with UK dividend payments falling 15% compared to 2008. The latest news that BP is considering not paying its next dividend is a big worry for UK income investors. BP’s total annual payments account for 15% of FTSE 100 dividends and it seems likely the second quarter distribution will be cut back or eliminated. The National Grid rights issue also hurt a lot of income investors. The traditional income sectors – banks, utilities, pharmaceuticals and telecoms – are facing structural changes at the moment. ...
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