Risk of dividend cuts highest for a decade – these funds are most in danger

The risk of investors’ incomes shrinking has reached new highs, as the affordability of shareholder payouts has fallen to its lowest level for a decade. 

One in five global companies could cut dividends, research suggests, as payouts have grown far in excess of profits every year since the financial crisis.

British investors in particular are exposed, with shareholder payouts from domestic firms ranking among the lowest in the world for affordability. 

London-listed firms Vodafone, Royal Mail and Centrica have already cut dividends this year. 

Global “dividend cover” – a measure of dividend sustainability – is expected to drop to 2.2 this year, according to analysis from Henderson International…