Home Business News BT shares back to 1984 levels as £3.3bn in dividends blown away

BT shares back to 1984 levels as £3.3bn in dividends blown away

by LLB Editor
7th May 20 1:57 pm

 A third dividend cut in its history means that BT is finally finding the combination of hefty debts, big pension deficit, tight regulation and stiff competition on multiple fronts, as chief executive Philip Jansen looks to prioritise the company’s spending on where it is most needed, including super-fast broadband to the home and fifth-generation (5G) mobile network infrastructure.

Russ Mould, AJ Bell Investment Director said, “The decision to cancel the final dividend for the year to March 2020, pay nothing at all in the period to March 2021 and then halve the annual payment to 7.7p a share in fiscal 2022 saves BT some £3.3bn and leaves income-hungry shareholders merely with the hope that there will be some long-term gain after this considerable short-term pain.

“The slashing dividend reduction is a far cry from former chief executive Gavin Patterson’s plan to increase the shareholder distribution by 10% a year, even if BT does have form in this respect, after the dividend cuts of 2001-2002 and 2009.”

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