Aberdeen shares jump on hopes of 'significant' dividend hike

Hopes that Aberdeen Asset Management could announce a "significant" dividend hike in its forthcoming annual results have sent the group to the top of the FTSE 100 leaderboard.

The group's plan to redeem a convertible bond in full at the start of next year will significantly boost net cash and increases the likelihood of an increased dividend payout this month, according to analysts at Numis. After rising 3.2% yesterday, Aberdeen shares were 3.1% higher at 345.4p by late morning, making it the second largest riser on a flat FTSE 100 behind airline giant IAG. Aberdeen said on Wednesday it would redeem in full its 3.5% 2014 convertible bond at par on 3 January 2013. With conversion rights at 185p a share, significantly below the current share price, Numis e...