SLI's Moore: Other large caps may follow Tesco in cutting dividends

Other large caps may follow Tesco in cutting dividends

Standard Life Investments' Thomas Moore anticipates Tesco's decision to cut its dividend may be followed by other large caps in turn.

He argues thinking outside the large-cap box is crucial to beating expectations for dividend growth. Not only is he confident smaller companies have further to grow, he thinks the sell-off in mid caps earlier this year was a buying opportunity. Moore's calls have proved right in recent years. His £666m SLI UK Equity Income Unconstrained fund has returned 80.3% in the three years to 26 September 2014, compared to a sector average of 52.3%, according to FE. The net asset value of the Standard Life Equity Income trust, which he also runs, has grown by 74.4% over the three years to 26 ...