Shares Magazine – May 23, 2019

18 | SHARES | 23 May 2019

GIGANTIC

DIVIDENDS

A

pproximately one quarter of the

FTSE 100 is yielding 6% or more,

according to analyst forecasts

collated by SharePad.

This seems unusually high and

ďĞŐƐƚŚĞƋƵĞƐƟŽŶ͗ĂƌĞh<ƐƚŽĐŬƐ

simply very cheap or are investors pricing in very

bad news for many of the biggest companies?

/ŶůĂƐƚǁĞĞŬ͛ƐEditor’s ViewĐŽůƵŵŶǁĞĂƐŬĞĚǁŚLJ

income investors had fallen out of love with a large

ŶƵŵďĞƌŽĨh<ƐƚŽĐŬƐƚƌĂĚŝŶŐŽŶŚŝŐŚLJŝĞůĚƐ͘

Given the current global environment of low

ŝŶƚĞƌĞƐƚƌĂƚĞƐĂŶĚůŽǁƌĞĂůƌĞƚƵƌŶƐ͕ƚŚĞůĂĐŬŽĨ

interest in big dividend-paying companies is

ƉĂƌƟĐƵůĂƌůLJĐƵƌŝŽƵƐ͘

In the past, investors would have happily mopped

6%

A quarter of the FTSE

100 yields 6% or more

WHAT’S THE

CATCH?

1

2

3

4

5

6

FTSE 100 DIVIDEND YIELD

199619971998199920002001200220032004200520062007200820092010201120122013201420152016201720182019

^ŽƵƌĐĞ͗ZĞĮŶŝƟǀ