FTSE up, volatility high, more dividends rescinded
The FTSE 100 is up approximately 350 points on the week and still subject to very high volatility as the virus continues to affect the markets.
We have seen a very large number of rescinded dividends this past week as companies seek to preserve cash in the face of the lockdown and this is affecting members portfolios.
We continue to work tirelessly to keep up to date with events as the normal rules seem to be changing. Covid announcements of dividend rescindments are usually following the established rules and are being announced by companies at 7am before the market opens, but there have been a good number after market open.
The scale of the move is now apparent and further rescindments and announcements by companies that they will not pay dividends will come in the next few weeks. Until the lockdown is over, most companies and many sectors will be unable to operate normally. We believe that dividends will be affected over a period of 6 to 12 months.
We would like to thank all of our clients for their kind and supportive messages during the past week and hope that you are all in good health.
Daily Comments Roundup
The FTSE 100 is down again today on another day when many companies prudently cut declared dividends to conserve cash in these difficult times including Hostelworld, Weir Group, MPAC, Senior Plc, James Fisher and British Land.
26 March, 2020 (Yesterday)
The FTSE 100 is trading up for a second day. Many companies are continuing to cancel previously declared dividends and also indicate the intention not to declare dividends with upcoming results.
25 March, 2020 (2 days ago)
The FTSE 100 is trading up this morning as the UK goes into lockdown. Dunelm, Redrow, Gateley and RPS Group all cancelled declared dividends.
24 March, 2020 (3 days ago)
The FTSE 100 has opened below 5000 this morning. Stagecoach and Card factory will not pay a final dividend. Go-ahead Group, Aggreko, ITV and IWG all cancelled declared dividends. N. Brown group suspended dividends for the foreseeable future.
23 March, 2020 (4 days ago)
There have been a number of dividend cuts and suspensions today, with the news of interest cuts the FTSE 100 is trading up 150 points.
20 March, 2020 (7 days ago)
The week ahead
- Monday, 30 Mar: Belvoir Group Plc Final Results
- Tuesday, 31 Mar: Tremor International Ltd Final Results
- Tuesday, 31 Mar: Diageo plc Interim Results
- Tuesday, 31 Mar: TP Group Final Results
- Tuesday, 31 Mar: Animalcare Group Plc Final Results
- Tuesday, 31 Mar: Inspired Energy Plc Final Results
- Thursday, 02 Apr: Epwin Group Plc Final Results
- Capital & Regional have announced they will maintain their dividend, while monitoring the ongoing developments of COVID-19 24 March 2020
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