For investors seeking income it has become a much tougher
task to build a portfolio of good value and reliable dividend shares.
Over the past year, 14 shares in the FTSE 100 index have
taken an axe to their dividends. Some, such as Tesco and Severn Trent, have
been consistent payers over the years.
But, as experienced investors can testify, when a company
faces headwinds, the dividend is often sacrificed.
The outlook for dividends is predicted to get even worse,
with experts arguing that companies are paying out too much of their earnings
in dividends.
According to Personal Assets, a respected investment trust,
a return to normal payout levels would see the 3.9pc yield on the FTSE All
Share fall by more than a third.
At such times a prudent strategy is to look towards the
dividend kings: those with a solid track record of growing payments…
Source: The Telegraph