Latest figures suggest that most IFAs anticipate that dividends from UK companies will stay the same, or decline this year when compared to 2015.
The data comes from Source, one of the largest providers of Exchange Traded Funds (ETFs) in Europe. Its research showed that 68% of IFAs held the view about UK company dividends, and that 53% had the same opinion as regards European equities and 64% for US stocks.
The figures also revealed other opinions.
On which three sectors would see the biggest fall in dividends paid this year, IFAs said:
- 82% oil/gas/energy
- 30% industrial goods and services
- 28% banking and financial services
On which sectors would see the biggest rise in dividends paid this year, IFAs also said:
- 48% said technology
- 38% said property/construction
- 35% cited healthcare
Executive Director, Equity Product Management, at Source Dr Chris Mellor said: “Finding quality stocks that pay attractively consistent dividends is becoming much more challenging. Given this, we teamed up with Research Affiliates, the market leaders in smart beta, to develop a suite of ETFs that addresses this growing issue.”