Article taken from: www.morningstar.co.uk
UPDATED September 2020: WPP yielding above 5% again as it reinstates its dividend James Gard 15 September, 2020 | 8:00AM Heading into the final quarter of 2020, the outlook for UK dividend investors remains mixed after a turbulent year. But progress towards dividend normality has been slow in other areas: aerospace and defence firm Meggitt ( MGGT ) will not pay an interim dividend this year after making a loss of £368 million in the first half, while casino operator Rank will not pay a final dividend after profits halved during the lockdown period. […] At Morningstar we often flag up high yields as a warning sign of trouble to come – for example, Royal Dutch Shell ( RDSB) , BP ( BP. ) and WPP ( WPP ) all had yields of 10% and above before announcing steep dividend cuts, and in WPP’s case preceded a cancellation. […] The advertising giant has declared an interim dividend this year of 10p, but this is sharply down on the 22.7p paid to investors for the first half of 2019. […] LSE and WPP are opposite ends of the spectrum for dividend investors – one has produced strong capital growth but low (albeit safe) yield, while WPP shareholders have faced share price weakness this year but are paid a chunky (if riskier) yield of 5% in an era of zero interest rates and near-zero gilt yields.
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