Dividends improve one year after FTSE lows

After 12 turbulent months for equity markets, top industry managers believe the worse is now behind them regarding dividend cuts

A year on from the low point in the UK equity market, the outlook is steadily improving for dividends despite the uncertainty over the strength of the economic recovery and the general election outcome. Although sterling remains low against both the euro and the dollar, the benefit to companies with high overseas earnings is beginning to feed through to the UK equity income funds. Many managers in the sector believe the worst is over for the dividends. According to Alex Breese, manager of Neptune UK Special Situations fund and assistant manager on its Quarterly Income fund, 202 com...