Banks not alone in reduction of dividends in UK stock market

This is a challenging time to take over the management of a UK equity income fund because of compani...

This is a challenging time to take over the management of a UK equity income fund because of companies cutting their dividend payments. And companies are not just cutting dividend payments but are also seeking to raise capital through rights issues. The need to raise capital often reflects poor underlying cashflows and one of the measures we scrutinise closely is the total yield of a company. This measure is an amalgamation of dividends, rights issues and share buybacks, and highlights companies either with surplus cash and strong cashflows or with weak cashflows and balance sheets. Des...