What next for investors seeking dividends?
Like most investment managers we like to buy shares in companies that are growing their profi ts and distribute some of this to their shareholders by way of dividends.
The covid-19 pandemic has seen many companies cut or cancel dividends, in order to preserve cash in these greatly uncertain times.
Generally though, share prices do not respond well to dividend reductions and in particular when a dividend is cancelled altogether as shareholders are no longer ‘paid to wait’, as it were.
