Two of Britain's biggest insurers are poised to slash dividends this week, potentially derailing the stockmarket's blockbuster summer rally, The Times reports.
Aviva is expected to unveil a 40% cut in its first-half payment and warn of further potential reductions. Legal & General (L&G), which has been facing persistent questions over its capital strength in recent months, is likely to reduce its dividend by up to half. The news comes after the FTSE recorded its best month in six years, gaining 8.5% in July, closing at 4,608 on Friday. The index has been driven by better-than-expected profits in Britain and America. Aviva and L&G are among the biggest FTSE dividend payers, shelling out £1.2 billion to investors last year. Full story...
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