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 Top 20 misconceptions people believe are true
- 2 'We're not heroes, just tourists': Swedish police officers on holiday stop vicious assault on New York subway
- 3 Black Mass trailer: Johnny Depp might have started making good films again
- 4 Jacob Lescenski and Anthony Martinez: Straight student asks gay friend to High School prom and makes a million Twitter friends
- 5 Australian student Tommy Connolly, 23, adopts his pregnant, homeless 17-year-old cousin to give her a chance at 'a better life'
Top 20 misconceptions people believe are true
Sofyen Belamouadden murder: The inside story of a crime that horrified Britain
'We're not heroes, just tourists': Swedish police officers on holiday stop vicious assault on New York subway
Head transplant: man will be attached to new body in under an hour and aim is immortality, doctor says
Australian student Tommy Connolly, 23, adopts his pregnant, homeless 17-year-old cousin to give her a chance at 'a better life'
The sickening truth about food banks that the Tories don't want you to know
Katie Hopkins on LBC: Listen to caller taking The Sun columnist to task over migrant comments
Migrant boat disaster: Ukip candidate mocks victims in sickening Twitter post
Nigel Farage wants the BBC to stop making programmes like Doctor Who, Strictly Come Dancing, and Top Gear
Global warming: Scientists say temperatures could rise by 6C by 2100 and call for action ahead of UN meeting in Paris
General Election 2015: Britain would become a 'communist dictatorship' under Ed Miliband and Nicola Sturgeon, claims wife of Michael Gove
iJobs Money & Business
£50000 - £55000 per annum: Ashdown Group: Business Analyst - Financial Service...
£18000 - £23000 per annum + OTE £45K: SThree: At SThree, we like to be differe...
£20000 - £25000 per annum + competitive: SThree: Did you know? SThree is the o...
£22000 - £24000 per annum: Recruitment Genius: This is an opportunity to join ...