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FTSE 100 rises to 12-day high of 6,785

The FTSE 100 was one of the better performing indexes on Tuesday with its key mining, oil and banking stocks all moving in the right direction. The FTSE 100 added 0.7%, lifting it to a 12-day high of 6,785.

“Though Archegos uncertainties are still hanging over the markets, European investors felt settled enough to push the region’s indices higher on Tuesday,” said Connor Campbell, financial analyst at Spreadex.

“There are dangers lurking to undermine these month-end gains. As occurred when February came to a close, bond yields are on the rise. And though the markets have broadly made their peace with that in recent weeks, it could still cause a record high-imperilling wobble,” Campbell added.

“Similarly, just because markets appear to have moved on this morning, doesn’t mean the dust has settled on Archego Capital’s collapse. That situation could still have some nasty surprises up its sleeve.”

FTSE 100 Top Movers

IAG (4.16%), Legal and General (2.94%) and Barclays (2.81%) were the top movers on the FTSE 100 on Tuesday morning.

While Severn Trent (-1.79%), Fresnillo (-1.77%) and Rentokil Initial (-1.41%) lost the most ground on the index.

Dividends

Total FTSE 100 dividend payments (excluding special dividends) are now expected to grow by 21% this year to £73.4 billion – a yield of 3.8%. Rio Tinto is expected to be the index’s single biggest dividend payer in 2021, well ahead of British American Tobacco, Shell, GlaxoSmithKline and Unilever.

Russ Mould, investment director at AJ Bell, comments:

“Current consensus forecasts show that the FTSE 100 is set to deliver its first year of dividend growth since 2018 this year, with a £74.3 billion payout enough to equate to a yield of 3.8%. That compares to a payout of £61.4 billion for last year which, if confirmed by company announcements, would be the lowest figure for the FTSE 100 since 2013.

“Total payments peaked at £85.2 billion in 2018 and even 2022 is not expected to return to that level as corporate profits, cash flows and confidence look to recover from the effects of the pandemic.”

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