J.P. Morgan Cazenove (JPMC) analysts have downgraded Alastair Mundy's Temple Bar investment trust to 'neutral', after finding it was the most at risk UK equity income offering to dividend cuts despite trading on one of the highest ratings in the sector.
Investment company analysts at JPMC dug into the portfolios of constituents of the Association of Investment Companies' (AIC) UK Equity Income sector to find the most and least affected by dividend cuts that have already and may in future be announced. The study found almost half (47%) of Temple Bar's investee companies are currently not paying dividends to shareholders, with the next worst affected, Lowland, at 40%. Which UK equity income investment trusts have the best dividend cover? A further stress test of portfolios and revenue reserves allowing for existing dividend cuts sho...
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