Graniteshares : Analysis of industry data by ETF provider GraniteShares reveals that 16 FTSE 100 companies have annual dividend yields – these are based on the current share price and the total dividends declared in the previous 12 months – of 0%.
A total of 35 FTSE 100 companies have made a cut to their most recent dividends or have stated that their next ones will be cut, and 30 have annual dividend yields of less than 1%.
When reviewing FTSE 250 companies, 75 have annual dividend yields of 0%, 85 have cut their most recent dividends or declared their next one will be reduced, and 99 have annual dividend yields of less than 1%.
GraniteShares says the decline in dividends has fuelled growth in sophisticated UK retail investors using leverage and short trading strategies. The value of trading in its 3x long and 3x short single stock ETPs listed on the London Stock Exchange was $505 million in the first four months of this year, compared to $153 million for the period September to December 2020.
The most traded 3x leveraged GraniteShares single stock ETP in April 2021 was 3x Long Tesla (3LTS), followed by 3x Long Nio (3LNI) and 3x Long Rolls-Royce (3LRR). In terms of the most traded 3x short GraniteShares ETPs, 3x Short Tesla was followed by 3x Short Nio and 3x Short Rolls-Royce.
Will Rhind, Founder and CEO at GraniteShares said: “Dividends make up a huge part of returns for investors and many have been cut or cancelled as a result of the Coronavirus crisis.
As investors look to replace these lost returns, many sophisticated ones have turned to using leverage and short investment strategies, which has fuelled strong growth in our single stock 3x long and 3x short ETPs.