Ashby: History tells us now is not the time to sell BP

Veteran income fund manager Graham Ashby explains why now may not be the best time to sell BP and how the UK equity market could still deliver positive dividend growth in 2010.

The King is Dead. Long live the King! Despite the protestations of many fund managers and politicians such as Boris Johnson, the fact is that the FTSE 100 futures market is already forecasting that BP will be forced to cut or temporarily suspend its dividend payments. This has prompted howls amongst many commentators that such a move would signal the death of UK pension and equity income funds, as BP accounts for approximately 12% of the UK equity market's dividend income. Instead, investors are being advised to shift their money into more diversified equity markets overseas or to buy ‘sa...