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FTSE 100 dividends forecast to grow by £10.9 billion in 2021

by LLB Editor
14th Dec 20 9:34 am

FTSE 100 dividend payments for 2020 are forecast to drop by 20%, or £14.7 billion, to £59.9 billion.

The outlook for 2021 is more positive with dividend payments forecast to increase 18%, or £10.9 billion, to £70.8 billion.

M&G, Imperial Brands, BAT and Polymetal are forecast to be the highest yielding stocks in 2021.

HSBC, Lloyds, Glencore and BT are forecast to deliver the highest dividend increases in 2021.

Russ Mould, investment director at AJ Bell, comments:“There is no doubt that 2020 has been tough on income seekers. In total, 53 current or former members of the FTSE 100 index have cut, deferred or cancelled over £37 billion of dividend payments in calendar 2020 thanks to the COVID-19 outbreak and subsequent recession.

“Yet the news flow is starting to improve. Fifteen FTSE 100 firms have either returned or declared their intention to return to the dividend list for fiscal 2020. A sixteenth – BT – has outlined plans to pay a dividend in 2021. The total dividend payments made or announced by those sixteen add up to £2.7 billion with four yet to finalise the actual figure. That £2.7 billion figure is still dwarfed by the value of the cuts announced in calendar 2020 but it nevertheless underpins the improved momentum in overall FTSE 100 dividend forecasts.”

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