Profits & dividends

[monabri]

In the US, companies are flagging up profit warnings based on fears from Corvid 19. I wonder if the UK dividend payers will hide behind C 19 as an excuse to rebase dividends?

[Dod101]

I don't think some of them will need an excuse. Some are bound to be affected if this carries on, especially any who are reliant on Chinese supply chains. International travel and so on as well. Maybe domestic banks will be OK.

I do not want to start another thread on the coronavirus but let's hope that it disappears as quickly as it has arrived. I think we should all conserve cash as far as we can and hope for the best. It is out of our hands for the moment.

Time as always, will tell.

Dod

[Bagger46]

https://www.marketwatch.com/story/heres ... 2020-01-22

I have taken a look at markets recovery from such health scares. Here is an example above.

Having watched and waited for quite a few weeks, and now sitting on quite a lot of idle divi money and other reserve cash, I have decided to get back in. I’ll deploy 40% of what I have available today. Might be too early, but what the hell, looking at the prices (and yields) on offer, I am getting partially back in. I feel certain that in five odd years time I won’t regret it at portfolio level, and will barely remember it all anyway.

Part of my thinking is also that a vaccine should emerge soon anyway, the pharma industry is working all out on this. Markets would likely catapult up at any such news. Also the G20 might feel that they must kick start economic recovery from this and take some concerted action.

Bagger

Been right before, been wrong before, like all of us, so DYOR.