MARC KIMSEY | ACCENDO MARKETS
Had the dividend cut been accompanied by a weak trading statement, the fall of 14 per cent might be justified. However, the trading floor believes the sell-off is harsh and applaud the board’s swift reaction to low-yielding bond incomes.
EAMONN FLANAGAN | SHORE CAPITAL
Once the dust settles we urge investors to revisit the shares and indeed we would view such weakness as a buying opportunity owing to the prospects for the group outside the UK and the expectations for good return on equity delivery in the coming years.
BARRIE CORNES | PANMURE GORDON
Given that 12 months ago RSA flagged that the rate of dividend growth was to reduce to circa two per cent we view the cut as very disappointing given that nothing has materially changed over the last 12 months. We have consequently downgraded our recommendation to ‘Sell’.