SVM warns to revise dividend expecations

Dividend cuts by banks will hurt investors after poor share price performance from high-yielding st...

Dividend cuts by banks will hurt investors after poor share price performance from high-yielding stocks like financials and consumers, according to SVM’s Collin McLean. The group’s managing director warned portfolios focusing on yield could be risky as the economy slows down. “The pain of a dividend cut on a high-yielding share can be greater than most, if the yield has been propping up the share price,” he said. “A much higher than average yield is the market’s way of telling companies to do exactly that. Boards are being advised to cut, as the market does not rate the sustainability of...