UK divi growth on track to be zero in 2016

These are hazardous times for investors in the UK, particularly those seeking sustainable income, writes Saracen's Scott McKenzie.

Scarcely a week goes by without a dividend cut being announced and, as a result, we expect dividend growth from the UK equity market to be close to zero in 2016, despite the strength of the US dollar boosting translated dollar dividends from some of the large index constituents. The dividend cuts in the mining sector recently were more severe than feared but the shares have rallied strongly as investors focused on the balance sheet strength of companies. The trends in the banking sector are mixed, with Lloyds demonstrating a strong commitment to future dividends, a modest growth in di...