AXA IM: UK dividends set for 'fuller recovery' by 2022

'Good news' for utilities and consumer staples

Next year will be a "better year for dividends" for those invested in UK equities while a "fuller recovery" is on the cards for 2022, according to AXA Investment Management's George Luckraft and Simon Young, who added that firms less affected by the Covid-19 pandemic will likely pay some of their deferred dividends later this year.

The managers, who head up AXA's Framlington Monthly Income and UK Equity Income funds, said it is "understandable" that firms have reduced or cancelled their dividends, given the assistance the Treasury and the Bank of England have provided this year. However, most sectors have already started to see a rebound in demand, while "pockets of strength" among UK dividend-payers such as utilities are likely to offset any widespread cuts in dividends, according to the pair. Global dividends suffer biggest quarterly fall since the Global Financial Crisis "As we go through the year, I expec...