More companies may need to cut dividends on Covid-19 uncertainty

Market-watchers say a number of firms may need to focus instead on conserving cash under current economic landscape

Published Sun, Apr 26, 2020 · 09:50 PM

Singapore

AS THE Covid-19 pandemic rages on, there is increasing uncertainty over dividend payouts with more firms tightening their purse strings to conserve cash.

Market-watchers The Business Times spoke to said that some companies may need to focus on conserving cash rather than dishing out dividends under the current economic landscape.

Shareholders may be expecting to be rewarded with dividends that reflect FY2019 profits given that 2019 had been a good year for many companies, said Tham Sai Choy, chairman of the Singapore Institute of Directors (SID).

Also, companies that…