David Smith, fund manager of Henderson High Income Trust (HHI), argues the lockdown losers that dragged on performance in the half to June will emerge from the Covid-19 crisis in ‘a strong position relative to their competition’. And despite having been through a period of dividend suspensions, deferrals and cuts, Henderson High Income forecasts an increase in the 2020 total ...

Global cigarette giant British American Tobacco (BATS) rose 1.9% to £27.06 on Friday despite missing first-half earnings estimates, after the Dunhill-to-Lucky Strike brand owner said it had sold more higher-priced cigarettes and seen strong demand for vaping products in its biggest market, the US. ‘BAT’ insisted consumption in the US was ‘resilient’, while also maintaining guidance for ...

UK stocks headed into the weekend on a firmer note after strong results from US technology stocks overnight and generally upbeat earnings commentaries from major UK firms. Sales updates from US tech giants Alphabet (which owns Google), Amazon, Apple and Facebook all beat market expectations, demonstrating the strength of their businesses during the pandemic and leading to renewed gains for the ...

UK dividends plunged 57% in the second quarter and could see a 40% decline across the whole of 2020, according to financial administrator Link. Second quarter dividends fell by 57.2% to £16.1 billion on a headline basis (including special dividends). Excluding specials, exceptionally high this time last year, the decline was 50.2% to £16 billion. Link’s best-case scenario now sees ...

Shares in British American Tobacco (BATS) wafted 3.4% lower to £30.15 on Tuesday after the global cigarettes titan was hit by coronavirus lockdowns in emerging markets. The firm cut annual adjusted profit and revenue forecasts, blaming the impact of prolonged lockdowns in South Africa and Mexico, as well as weaker sales in countries including Bangladesh and Vietnam. Cushioning the blow for ...

News that mobile telecoms firm Vodafone (VOD) will continue paying dividends gave income investors some cheer after a series of cuts, cancellations and deferments of dividends from UK stocks. There are still a significant number of FTSE 100 firms which have not yet made an explicit announcement on the dividend. The table shows the highest yielding names (based on current forecasts) which fall ...

According to the ‘efficient market theory’, at any given point in time share prices should reflect all the information available to investors and therefore stocks should always trade at their fair value. If the theory is correct, it should be impossible for investors to buy undervalued stocks or sell overvalued stocks because the market has already priced in all possible ...

This year has seen 233 London-listed companies either cancel, cut or suspend their dividends, principally because of the coronavirus crisis. This is terrible news for anyone who relies on their investments for income. In many instances, even previously-declared dividends are not going to be paid, a terrifying trend only seen during times of massive distress that has returned as fiscal prudence ...

All market corrections are different and have different causes, and the one currently being experienced has been notable for both its scale and speed, and for the fact it is being driven by a health emergency rather than a financial one. The simple fact is many investors will have been caught off guard by the events of the past month. In this article we will provide some ideas about how to get ...

Just as retail investors are being forced to deal with significant disruption to the markets, so too professional fund managers are having to react to the new realities created by the coronavirus outbreak. In this article Shares talks to the people at the helm of two popular investment trusts to get some insight into how they are coping with the current volatility. With its focus on ‘safety ...

Advertising giant WPP (WPP) and engineering company Smiths (SMIN) have become the latest FTSE 100 firms to axe their dividends, taking the total up to 13. WPP has suspended its 2019 final dividend and a £950m share buyback having cited a recent deterioration in demand, in a move which will save it £1.1bn in cash. Smiths meanwhile has not declared an interim dividend for the first half of ...

London’s FTSE 100 index had reversed earlier gains to trade down 1.9% and below the 5,000 mark by lunchtime after a choppy start on Thursday. Initially stocks were supported by a jump in the shares of tobacco company British American Tobacco (BATS) and a weaker pound as London braced for a virtual shutdown due to the spread of the novel coronavirus. British American Tobacco puffed 22.5p ...

Coronavirus presents a big risk to corporate earnings if world trade is affected and companies’ supply chains are interrupted. While investors have begun to factor this risk into company valuations over the last month, when companies say they no longer have visibility over earnings it makes the job of valuing them a great deal harder. Now, as the virus continues to spread, some investors are ...

The FTSE opened 1.5% lower at 6,900 points and continued to plunge through morning trade. This followed the sea of red ink on European markets which fell sharply as fears escalate that the coronavirus will make a big dent in corporate profits. In Asia, Japan’s Nikkei 225 was off 2% but China’s SSE index bucked the negative trend and rallied 2% on stimulus hopes and fewer virus ...

New Woodford Income Focus managers Aberdeen Standard Investments (ASI) have given a glimpse of what the revamped portfolio will look like, with only two of the top 10 holdings left over from the Woodford days. Renamed the ASI Income Focus, the new fund will reopen tomorrow under the management of ASI fund managers Charles Luke and Thomas Moore. Investors are able to place trades from midday ...

If you have ever wondered about what purpose stock market indices serve, how they work or just wanted to know how they relate to investing, we have the answers. Over the coming weeks we will cover all the main global indices, starting with the most recognised UK market benchmarks. We will discuss what moves them and how you can gain exposure to their performance. FTSE 100 INDEX You ...

There is a saying that a good start in January means the year as a whole is likely to see positive returns. Looking at the history of the FTSE 100 since its inception in 1984, seven of the index’s 10 best years came when it got off to a flyer in January and seven of its 10 worst showings came after a drop in the first month of the year. Investors could be forgiven for fearing the worst ...

Fallen star fund manager Neil Woodford’s one-time flagship fund Woodford Equity Income is now returning its depleted capital to investors. The first payment of cash to investors is expected to be on or around 30 January, representing about 70% of the fund’s current value. If you feel royally let down by Woodford and want a better fund generating income, help is at hand. Rather than ...

UK stocks were lower at the open in line with global markets on rising geopolitical concerns following a US air strike which killed a top Iranian general. The FTSE 100 index of leading stocks was down 0.4% to 7,575 while the FTSE 250 index of mid-cap stocks was down 0.3% at 22030. Almost every sector was in the red except the energy sector. Oil prices surged after the US attack with Brent ...

UK blue chip shares have tumbled this morning as investors end the year on a cautious note. It mirrors last night’s moves on Wall Street, where the S&P 500 closed 0.6% down and the Nasdaq Composite 0.7% down. Not helping London’s leading basket of stocks, which is exporter-heavy, is a strengthening of the pound against the dollar to $1.3132. At around 8.50am, the benchmark FTSE ...