Dividend fears overblown as payouts increase: Frikkee

Newton's Tineke Frikkee believes investor fears over widespread dividend cuts in the UK has been ove...

Newton's Tineke Frikkee believes investor fears over widespread dividend cuts in the UK has been overblown, with nearly two-thirds of UK companies recording increased dividends in Q1. Frikkee, the £2.25bn Higher Income fund manager, says the investor assumption of a dividend "Armageddon" this year has not been close to materialising. According to Frikkee, of the UK companies reporting in Q1, 65% increased dividends, 10% maintained it, with just 25% making some sort of cut. "Our model for UK dividend growth predicts a fall of around 10% in 2009, but we have succeeded in dodging most of...