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Woolies looks to cut dividends

A cut in the dividend is expected when Woolworths reveals full-year results this week. Shares in the struggling retailer have lost about two-thirds in value since a demerger from Kingfisher in 2001, but are now yielding a bumper 16%. A research report by analysts at Credit Suisse in January high-lighted concern at Woolworths’ comparatively high debt levels, suggesting that Woolies will have less cash to spend on shareholders.

Meanwhile, Unity, the investment group backed by Icelandic investor Baugur, controls a 10% stake in Woolworths and is said to have been pressing for a break-up for almost two years.

The Times

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