Frikkee grows dividend as companies cut payouts

Tineke Frikkee grew the dividend on the Newton Higher Income fund by 3.5% in the 12 months to 30 June despite prominent banks, and oil and gas firms slashing their dividends.

The manager of the £2.6bn fund attributes this growth to diversification across a range of sectors including pharma and tobacco, in which companies have increased their payouts. Over the same period the yield on the FTSE All Share fell from 4.6% to 3.6%. In absolute terms, payouts to shareholders by UK listed companies dropped 11% over the nine months to 31 March, according to Capita Registrars. Frikkee says the 12-month historic dividend yield on her fund is at 7.84%, based on the ex-dividend unit price of 30 June. The FTSE All Share, by contrast, has a yield of 3.6%. Capita...