Wizard wrote:I have just updated the list of cancelled / suspended / cut dividends. Not many cuts, I think pretty much everything so far has been a total wipe out of dividends. We have reached the unfortunate benchmark of 10% of the FTSE100 announcing the next dividend is cancelled. The proportion of FTSE250 is lower, but it is more likely we have missed some of those and the percentage of those companies that paid dividends is of course lower to start with.
Not good for income strategies. I have a feeling this could be the stiffest test HYP has had in respect of income reduction.
I've just been lucky so far. My only disaster is quite a big payer: Persimmon. Morrisons, Marks, Go-Ahead Group, were all sold in former times.
It's only a matter of time before I get some serious erosion of income, I believe. And of my other income streams, I am sure that I will have to carry defaults from tenants so I'm squeezed from both sides. Still, with State pension, ITs, income reserve - and the wife(!) - the household should be OK.
Whether this is
going to be a stiffer test than 2007-8, we shall see. Someone did comment that the past ten years austerity have been nothing to what's coming in view of all the borrowing HMG is clocking up.