British stock valuations look “unequivocally appealing”

Those with a long-time horizon – and the stomach for a bumpy ride – will find much to interest them in British stocks.

Stagecoach is among several firms to have slashed their dividends this week © Alamy

Get ready for dividend cuts, says Daniel Thomas in the Financial Times. British companies are usually a happy hunting ground for income-seekers, but with the Covid-19 pandemic decimating earnings and cash hoarding rife, investors are braced for “savage” cuts to payouts.

This week saw ITV, Stagecoach and Kingfisher scrap dividends. FTSE 100 dividend payments have almost doubled to £90bn over the last decade. Yet even before the virus earnings cover for many FTSE 100 businesses looked stretched.

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Markets editor

Alex is an investment writer who has been contributing to MoneyWeek since 2015. He has been the magazine’s markets editor since 2019. 

Alex has a passion for demystifying the often arcane world of finance for a general readership. While financial media tends to focus compulsively on the latest trend, the best opportunities can lie forgotten elsewhere. 

He is especially interested in European equities – where his fluent French helps him to cover the continent’s largest bourse – and emerging markets, where his experience living in Beijing, and conversational Chinese, prove useful. 

Hailing from Leeds, he studied Philosophy, Politics and Economics at the University of Oxford. He also holds a Master of Public Health from the University of Manchester.