Income managers pull back on Lloyds after dividend delays

UK equity income managers have found their early purchases of Lloyds Banking Group thwarted by a longer than expected delay in the bank restarting dividend payments.

Lloyds shares rose 65% last year, as an uptick in the UK economy coincided with an improvement in its fortunes, the government selling down its stake in the bank, and a reported return to the dividend register. But shares have fallen 4% in 2014, and some income managers now suspect reports of a planned 70% payout ratio may prove to be wide of the mark. Clive Beagles and James Lowen, managers of the £2.7bn JO Hambro UK Equity Income fund, have sold down their position in the stock following its delayed return to the dividend register. “We have reduced our position in Lloyds Banking ...