A wallet collecting falling money
The days of plentiful dividend payments appear to be over as more companies cut their pay outs

Income investors face a perilous situation as British businesses continue cutting dividends as they try and save cash to stave off the dramatic consequences of the coronavirus lockdown

Every day has brought a new wave of companies ditching shareholder payouts either to shore up their finances, or in the case of banks and insurance companies, because of pressure from regulatory bodies.

In total, 314 companies have suspended or removed their dividends, worth more than £29bn, while 118 companies have forged ahead with their payouts with a value of £10bn, according to data from fund shop AJ Bell.

While this may make sense for the survival of the firm, it is frustrating for investors who survive off their portfolio's income. Telegraph Money provides a guide to which firms are still paying out – and which have left investors wanting.

Telecoms

This week, BT announced it would no longer pay its final dividend for the year and provided no guidance for the next three months. It also said when the dividend did return, likely in March nest year, it would be at about 7.7p a share, almost half its current level. In total this removed £3.3bn in dividend payments.

三级成人视频Vodafone, another key dividend payer, is due to report next week.

Oil

三级成人视频BP and Shell, the two largest oil companies in Britain, reported to the market with very different results.

Shell shocked investors by cutting its payout for the first time since at least the Second World War. It will pay a $0.16 (£0.13) per share, a reduction of $0.47 compared with last year. Investors will lose out on some £2bn.

三级成人视频Oil companies had been expected by some to reduce or suspend their payouts due to the slump in oil prices, which have dropped almost three-quarters so far this year as demand has fallen due to fewer planes in the sky and factories shut down. 

三级成人视频However, BP announced it would continue to pay its dividend, making it the largest payer listed in Britain. The firm will pay out £1.9bn this year.

Retailers

三级成人视频The high street is under increasing pressure, with businesses such as Debenhams filing for administration and many more companies expected to follow suit. 

三级成人视频In an effort to keep costs down and ensure future stability, many of the largest companies including Marks & Spencer, Associated British Foods (the owner of Primark) and Next have all suspended their dividends, worth half a billion pounds.

Banks

British banks have had to axe dividends following pressure from the Bank of England and regulators. The watchdog was worried banks could otherwise require bailing out as during the financial crisis.

They paid out £15.6bn in 2019 and have cancelled £9.1bn in income so far this year in an attempt to keep cash in case of an emergency. While prudent, this will be frustrating for owners of stocks like Lloyds, Barclays and HSBC, which collectively accounted for £7.6bn of the cuts and are staples among income investor portfolios.

三级成人视频HSBC and Lloyds Bank also confirmed they would not pay a dividend for the first quarter of 2020.

Insurers

Several insurers have also announced they will not be paying dividends following a similar warning from the central bank. Aviva, Direct Line, Hiscox and RSA all said they would not be rewarding investors. In total, £1.2bn has cut.

However, Legal and General (L&G) announced it would be paying its final dividend for last year. It is making the largest committed dividend of any company listed on the London Stock Exchange, paying out £754m. Admiral updated investors, announcing it would also pay out its near £300m dividend.

Another major insurer to pay its dividend is Prudential. The firm is regulated by the Hong Kong Insurance Authority so is not affected by the PRA regulations. It confirmed its £540m dividend last month.

Supermarkets

Tesco has announced it will pay out the remainder of its dividend with a final payout of 6.5p per share, equating to £640m. The move to continue payouts was seen as controversial given the supermarket giant has taken advantage of a business rates holiday. However, it said its dividend only covered profits until the end of February.

Sainsbury's, Britain's second-largest supermarket, said it would not pay its dividend of £175m to investors at the moment, delaying the decision until later in the year.

Morrisons has also agreed to pay its final dividend, although it has put its special dividend on hold this year. It had built up a track record of extra payouts, having distributed an additional 4p per share in 2017, 6p per share in 2018 and 2p per share for the first half of 2019.

Airlines

三级成人视频Perhaps the worst-affected sector of the British stock market, airlines have been quiet on their dividend expectations, although they are not likely to keep payouts.

International Consolidated Airlines (IAG), the owner of British Airways, announced it had cancelled its final dividend payment as planes have been grounded and people have been told not to make any non-essential travel. 

Rolls Royce, which makes engines for planes also said it is revising its targets and cutting its dividend.

Budget airlines including Ryanair, easyJet and Wizz Air have yet to make a decision on their dividends, with full-year results not due until later in 2020. EasyJet has already paid out a scheduled dividend payment this year.

Housing

One final area that has seen a lot of dividend disruption because of coronavirus is house builders. With social distancing in place and many urged not to leave their homes, sales of properties have ground to a halt, with viewings unable to take place.

Most companies in the sector, including Persimmon, Barratt Developments, Taylor Wimpey and online estate agent Rightmove have cut a reported £1.3bn in payouts between them.

Like L&G in the the insurance sector, Bellway stands as the only major house builder to confirm it will pay its dividend, worth £125m.