Posted this on the GKN website but thought it worth a read for Smiths investors. I was a Smiths investor but sadly sold out too early :-
The article is worth a read to put the whole thing in context.
GKN features in the article alongside BAE, BT, Barclays, G4S and others.
What's striking is that GKN has the largest relative pension to the size of it's business and as the article highlights the threat to all these companies dividends, GKN seems to also stick out as it has the highest payout ratio of 74% -- next nearest is Smiths with a payout ratio of 65%.
I discounted Shell which has a payout ratio of 616% -- i.e. it's nowhere near covered.
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