The directors of Winkworth have announced that the company will pay a dividend of 1.68p per ordinary share for the first quarter of 2020 to shareholders, despite the current trend of companies deferring and cancelling their dividend payments.
Compared with the same period last year, the estate agent revealed it is a 12% decrease amid the coronavirus pandemic.
In a statement, the company said: “The board remains committed to paying a quarterly dividend. While the intention is to resume a progressive payment once trading conditions permit, the reduction in the first quarter dividend reflects the element of caution required as a result of the Covid-19 crisis.
“As it is the board’s objective to ensure that dividend pay-outs are covered by post-tax profits, the total distribution for 2020 is expected to be lower than 2019.”
The news comes as Winkworth revealed it has reduced franchise fees in order to help its businesses weather the coronavirus outbreak.
Since the government’s directive on the temporary closing of high street branches came into effect on 24 March 2020, Winkworth revealed it has undertaken a “number of initiatives” to help its franchisees