Luckraft flags possibility of large cap shift

Axa Framlington manager George Luckraft says dividends from UK oil majors are sustainable, but he will reduce holdings this year if share price rises reduce yield.

Luckraft, who runs three equity income funds at Axa Framlington, says he could reduce his weighting to large cap dividend payers "at some stage this year" if their shares rise, dampening the yields he enjoys. The manager holds large oil explorers partly for dividend yield. He says their dividends are safe with oil at around $80 per barrel. "To have dividend cuts you would need to have oil sustained below $50, and I don't see that at the moment." However, he adds: "If BP's shares are near £7, then their yield drops significantly, and you find opportunities elsewhere." He says whe...