Dividend cuts creating ECM opportunity

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By Aidan Gregory, Sam Kerr
11 Aug 2020

The huge swathe of dividend cuts UK companies have made because of lockdown has created an opportunity, to issue equity capital, for those that have not stopped returning money to their owners.

According to a research note from ETF provider GraniteShares, 445 UK companies cut or suspended dividend payments between January 1 and July 24.

The note said 139 of these companies were AIM stocks, however, 50 FTSE 100 companies had done the same, as had 108 FTSE 250 companies.

The huge ...

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