Dividend reductions from commodity and supermarket sectors

Shareholders of supermarkets in the UK are likely to be disappointed as the dividend payouts are being reduced.
Capita Asset Services have released figures that say the three months to the end of September saw a record £27.2 billion pounds in dividends. But investors shouldn’t expect that much next year.
The state of commodity prices, and the financial war between the big supermarkets, mean that some companies are likely going to end up slashing the payouts they make to their shareholders.
The payouts made by Glencore, a commodities, mining and energy company have announced that for 2016, they will be cancelling their payouts, saving the company £1.5billion.
Tesco and Sainsburys are also already slashing payouts, it has been reported.
Total payouts for the second quarter of 2015 reached the highest that they have been since 2008.
Although Dave Lewis, the CEO of Tesco, has been streamlining the business and making it more efficient, it shouldn’t be forgotten that the biggest supermarket in the UK has undergone a terrible year financially.
It is not a surprise that repercussions would be felt by the shareholders, but it acts as a reminder of how much financial stress the superstore, and the market as a whole, has been under over the last few years.