S&W's Frikkee: How healthy are UK dividends?

Long-term asset return studies, such as the Barclays Equity Gilt Study, confirm that dividends - and in particular dividend reinvestment - are the drivers of long-term total returns from UK equities.

But just how healthy are UK dividends? In oil and gas, dividend concerns have declined. BP and Shell have demonstrated good progress in cutting costs, improving cash conversion and reducing capital expenditure.  In mining, concerns on dividends have also declined. Rio Tinto should return to higher profitability and a stronger balance sheet this financial year than its 10-year average. Rio surprised positively with its dividend increase and its yield is well above the 10-year norm.  Miners and Old Mutual drive FTSE higher BHP Billiton has demonstrated good progress on costs and free...