Decimated financials sector brings home dividend frailty to UK Income

Poor year hits UK income as research predicts almost half of firms in All Share will cut or scrap dividends in 2009

UK Income vehicles shortlisted in the 2008 Investment Week Fund Manager of the Year Awards have faced a worsening dividend background over the last 12 months. Most of the problems have come from the decimated financials sector, with banks previously accounting for a quarter of FTSE 100 yield. Recent UBS research predicts almost half the companies in the All Share will cut or scrap their dividend in 2009. Financials is the worst affected area, with three-quarters expected to reduce payments, with only healthcare and utilities showing this figure as below 20%. This drought has cau...