Income managers forecast dividend growth despite BP

UK equity income managers are still forecasting dividend growth across the market this year, despite income behemoth BP suspending payouts until at least 2011.

BP last week scrapped its first quarter dividend, which was scheduled for payment on 21 June, and also declared no dividends would be paid in the second and third quarters of 2010. Its move is a huge blow for investors in the UK, particularly millions of people in pension funds and equity income vehicles. BP dividends account for around £1 in every £7 of share payouts from UK blue-chip firms and have not been slashed since 1992. The last time BP suspended a dividend payment was during World War II. While the BP action will have an impact on the overall market yield, LV= head of UK e...