Dividend payouts set to resume after pandemic-related cuts
Analysts predict UK firms are likely to pay out £32.7bn in dividends between now and June 2021—although many boards are debating the ethics.
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Dividends are coming back. That is the prediction at least of one piece of research after the pandemic caused hundreds of companies to cut their payouts. But boards are likely to be considering the ethical position of their dividends, not just whether they can afford them.
Peel Hunt, an investment bank, says the rate at which dividends have been cut has slowed and a significant number of companies are now either “extremely likely” or “likely” to pay out an estimated £32.7bn in total between now and June 2021.
Among the 158 companies “extremely likely” to pay out are 44 FTSE 100 companies, which could distribute as much at
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