The sustainability of dividends from UK stocks has come under scrutiny over the past few weeks, for ...
The sustainability of dividends from UK stocks has come under scrutiny over the past few weeks, for two reasons. First, the news that banks receiving government help will not be able to pay dividends. Second, the realisation that a recession may be imminent. Banks are important because they contributed a significant proportion of the dividends from the UK stock market last year. I think HSBC will be the only major UK-based bank able to pay dividends next year. HSBC is being strained by the economic conditions but, paradoxically, the main risk to the dividend will be HSBC's temptation to '...
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