FTSE 100 dividends fall to lowest level in eight years

Dividend payments now expected to fall for two consecutive years

Dividend payments for FTSE 100 companies are forecast to fall 24% - or £18 billion - in 2020, leaving the total at its lowest level since 2012, according AJ Bell’s latest Dividend Dashboard report.

This means the FTSE 100 is expected to yield 3.5% for 2020, rising to 4.2% in 2021. The report revealed that dividend forecasts for the year have fallen by 10% since June to £56.5 billion, largely the result of BP's decision to slash its second-quarter dividend in half. Dividend payments are now expected to fall for two consecutive years before starting to recover in 2021. Russ Mould, investment director at AJ Bell, said: "In total, 35 members of the index have cut, deferred or cancelled payments for 2020 thanks to the Covid-19 viral outbreak and subsequent recession, while 28 have...