Rising dividend payouts – the fallout

High dividend payouts may sound like a good thing. But is there such a thing as too high, and what does this mean for clients?
by Paul Golden

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In June 2019, Henderson International Income Trust’s head of global equity income, Ben Lofthouse, made headlines with his observation that investors lured by high yields were at risk of falling into a value or dividend ‘trap’ where yields are out of kilter with those of similar companies. He was widely quoted as saying that if you were caught in one of these traps, “you may find the income you hoped for is cut and has no prospect of sustainable growth”.
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Published: 27 Feb 2020
Categories:
  • Wealth Management
  • Bonds
  • The Review
Tags:
  • yield
  • FTSE 100
  • dividends

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