Income managers fear 20% dividend cuts

Outlook for dividend payouts for the coming year is poor, but upturn of around 6% is on the cards for 2010

Income managers are preparing for European dividends cuts of almost 20% this year, though their levels should pick up into 2010. Average payouts are set to fall by 17.4% across Europe in 2009, according to research from Markit. The financial information provider found only 36% of companies in the Dow Jones Stoxx 600 increased their dividend payout in Q1 2009, compared with 75% in Q1 2008. The research also predicts while dividends are set to decrease across Europe in 2009 they will return to positive territory in 2010 with an average increase of 6.28%. In the UK, Markit has predicte...