Income managers warning All-Share yield could drop by third

Managers consider impact of bank dividend bans, highlighting decent yields elsewhere

Income managers warn the FTSE All-Share yield could drop over a third next year as several banking dividends are banned and other sectors slash payments. As part of the bailout deals for HBOS, Lloyds TSB and Barclays, the stocks are not able to pay dividends for at least 12 months. Walker Crips manager Jan Luthman said the yield on the index will fall at least 25% next year and could drop as much as 50% as bank dividends are stripped out and housebuilders and retailers continue to cut payments. Artemis' Adrian Frost said the All-Share has a historic yield of 5%, which he thinks would ...