Next may have disappointed a few optimistic analysts who had expected the retailer to declare a full-year dividend but in March the number of UK-listed firms that made or restored payments to investors once more comfortably exceeded those who cut them, says Russ Mould, AJ Bell Investment Director.
“Payment declarations came to £7.2 billion, while a further £0.7 billion worth of dividends were restored, against just £0.3 billion of cuts. Royal Mail also flagged it would declare a one-off dividend of 10p a share, worth some £100 million, alongside its full-year results in May.
“The aggregate of dividends paid and restored now exceeds the value of those cut or cancelled since COVID-19 swept around the world by £14.7 billion, or nearly 30%, to suggest that companies really do feel the worst may be behind us, in terms of the pandemic and the economic downturn.
“Payment declarations came to £7.2 billion, while a further £0.7 billion worth of dividends were restored, against just £0.3 billion of cuts. Royal Mail also flagged it would declare a one-off dividend of 10p a share, worth some £100 million, alongside its full-year results in May.
“The aggregate of dividends paid and restored now exceeds the value of those cut or cancelled since COVID-19 swept around the world by £14.7 billion, or nearly 30%, to suggest that companies really do feel the worst may be behind us, in terms of the pandemic and the economic downturn.”
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