The Covid-19 crisis saw dividend payments cut by 57% in the second quarter of this year, as many companies took action to protect balance sheets.
Image: Daniel Leinad/Shutterstock
The pandemic has had an emphatic impact on rewards for shareholders. A report this reveals that dividend payments in the UK were cut in the second quarter by a “dizzying” 57.2%, or £22bn.
The statistics, compiled by Link Asset Services, show that 176 companies opted to hold on to cash during the lockdown by cancelling dividend payments. A further 30 reduced their dividends. In all, they amounted to three-quarters due to pay in Q2.
Link says dividends paid in Q2 this year are the lowest since 2010 and “the decline itself is by far the biggest ever recorded”.
Only the scale of the figures should come as a surprise. As lockdown
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