Two-year dividend famine set to continue - papers

Stock market experts are warning of another year of dividend famine as some of Britain's biggest dividend mainstays struggle to maintain payments to shareholders.

Dividends from British-listed companies fell by £10 bn, or 15%, last year to £56.9bn, The Times reports. While they may creep up this year, they will still fall well short of the £66bn distributed in 2008, according to the Capita Registrars Dividend Monitor. Because of rights issues and other recent capital-raisings, shareholders have been in the unusual position of being net payers to companies rather than recipients. Last year, listed UK companies tapped shareholders for £73bn in new equity, £16bn more than they paid out in dividends. Full story...