'Deeper' cuts from FTSE dividend giants shows Covid-19 has 'wrecked' income outlook

UK dividends at lowest levels since 2014

The forecast dividend payout for the FTSE 100 index in 2020 has plummeted by 17% compared to last year, according to AJ Bell's latest Dividend Dashboard report, which means that combined with an 11% fall over the previous year, UK dividends are now at their lowest levels since 2014.

The report, which found the dividend forecast has fallen from £91bn to £62bn over the past six months, said just ten firms are expected to generate 55% of the projected payout as 48 FTSE firms have so far either cut, deferred or cancelled a dividend payment. Overall, this means the FTSE 100's forecast yield for 2020 now stands at 3.6% compared to the 4.7% yield expected at the start of the year, as 48 members of the index have so far either cut, deferred of cancelled payouts as a result of the coronavirus pandemic. Not all companies that have suspended dividends are high risk business...