BT set to increase dividend
Sunday 06 May 2012
Telecoms giant BT is expected to announce plans to increase its dividend policy when it reports a rise in profits on Thursday.
City analysts reckon BT could hike its payout to shareholders by a third over the next three years as it continues to improve margins and cut costs. The announced half-year dividend was up 8 per cent.
Chief executive Ian Livingston cheered the City in February when he said BT would reach £6bn profit before exceptional items, known as Ebitda, in 2012 – a year sooner than planned.
Analysts forecast a 16 per cent rise in adjusted pre-tax profits to around £2.4bn in the year to March, despite an estimated 3.5 per cent slide in revenues to about £19.4bn. The group has also reached a deal with trustees to pay an extra £2bn into its pension fund to reduce the deficit before the end of the financial year.
Jerry Dellis, an analyst at Jefferies bank, said the combination of improved profits and the pension deal gives BT "scope to enhance dividend distributions".
Shares in BT, valued at just under £17bn, have risen 10 per cent in the past year.
- 1 Windows 10: man updates PC, wakes up to find porn slideshow on repeat
- 2 The 'world's most beautiful vagina' has been debunked by science
- 3 John Green schools morning show hosts after awkward interview with Cara Delevingne
- 4 Supermodel Gisele Bundchen mocked for wearing a burka to avoid being seen visiting plastic surgeon in Paris
- 5 Bulletproof armadillo puts Texas man in hospital after shot bounces off hard shell
Whoopi Goldberg tells Cara Delevingne to suck it up: 'She's not famous. I'M famous'
John Green schools morning show hosts after awkward interview with Cara Delevingne
Supermodel Gisele Bundchen mocked for wearing a burka to avoid being seen visiting plastic surgeon in Paris
Bulletproof armadillo puts Texas man in hospital after shot bounces off hard shell
'Rowdy' Roddy Piper dies: Wrestling legend dies aged 61, according to reports
Yvette Cooper: Our choice is years of Tory rule under Jeremy Corbyn – or a return to a Labour government
Labour leadership contender Jeremy Corbyn says 'we can learn a great deal from Karl Marx'
Is Britain really full up? Are migrants taking our jobs? Leading academic answers the most common anti-immigration claims
Calais Migrant Crisis: Deputy Mayor of Calais labels Cameron's use of 'swarm' as 'racist' and 'ignorant'
Public anger after French sunbather beaten up by gang for wearing a bikini in Reims park
Labour leadership: New poll shows party is now even 'less electable' than under Ed Miliband
iJobs Money & Business
£30000 - £35000 per annum: Recruitment Genius: This is an exciting opportunity...
£13000 - £15000 per annum: Recruitment Genius: Are you passionate about custom...
£22000 - £25000 per annum: Recruitment Genius: Main purpose: Under the directi...
£35000 - £37000 per annum + benefits : Ashdown Group: Contracts Manager - City...