Report
Liseth Galvis-Corfe

Overdistribution, an alarm signal for the UK stock market?

The dividend cover ratio for the FTSE100 companies fell below 1 last year, and threatens to fall further when the 2017 results are in.  UK quoted companies have come under increasing pressure from institutional investors to grow their dividents and, whenever possible, make addidtional one-off payments to shareholders. The continuation of extraoridinarily low borrowing costs, an intended consequence of Quantitive Easing, invites the scenario in which corporate balance sheets are loaded with unnecessary debt, to help satisfy the income appetites of investors.

Provider
Economic Perspectives
Economic Perspectives

Economic Perspectives is a trusted provider of global macroeconomic and financial research with clients in North America, Asia and the UK.

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Analysts
Liseth Galvis-Corfe

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