European companies ditch dividends to save cash
Reuters
Published Apr 09, 2020 05:38AM ET
(Reuters) - European companies are scrapping dividends to maintain cash and comply with regulations in response to the financial havoc caused by the spread of the new coronavirus.
Companies have been racing to cut dividends as lockdowns of major cities crush businesses, drying up their cashflows, with banking authorities and national governments also rushing to regulate financial institutions and state-owned companies.
More than 80 of the top 600 listed companies in Europe cut or scrapped dividends between Feb. 24 and April 8, a Reuters analysis found. Among the latest to suspend dividends were French aerospace and defence supplier Thales (PA:TCFP) and Swedish metal-cutting tools and mining gear maker Sandvik (ST:SAND) on Tuesday. UK-listed companies could cancel about $60 billion in dividends this year, according to a report by analytics company Link Group.
(GRAPHIC: European companies cut dividends - https://fingfx.thomsonreuters.com/gfx/mkt/xklvybgepgd/dividends.PNG)
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.