Earnings season is fast approaching here and we expect a raft of dividend updates from FTSE 100 companies in the coming weeks. Until then, we’re gathering all the latest intel we’ve gleaned since our last update in November, as well as looking forward to this year.
A sensible place to start would be to look at Morningstar’s European Equity Market Outlook for 2024. Our analysts Michael Field and Ben Slupecki reflect on the end-of-year rally that supported global stocks. In a deep dive across sectors, our analysts also looked at dividends. Javier Correonero, a telecoms analyst, makes some observations based on that sector that could also be applied to the wider UK market (indeed, Vodafone is one of his covered stocks).
“The average dividend yield stands at 6.7%, with some firms offering 8% to 9%. Firms with maintainable yields have lower risk of dividend cuts and the potential for dividend growth in the future … Payout ratios…
