Centrica’s switch watch and payout threat
Having lost 823,000 UK consumer energy customers in the third quarter, all eyes are on Centrica (CNA) ahead of full year figures on 22 February.
The owner of the UK’s biggest household energy supplier British Gas has had a difficult year, prompting a profit warning in November. That puts its dividend under serious threat.
An income yield of 9.5% based on the 12p 2017 forecast payout implies that the market does not believe the current level of dividend is sustainable. (SF)