Two consumer facing companies reported yesterday, both with a strong commitment to dividends but facing vastly different challenges.
United Utilities’ main products, water and waste disposal, are essential but therefore highly political. Many people in its northwest region want the company renationalised.
Playing into that possibility, the management openly puts local communities, customers and the environment before investors, who can nevertheless rely on a strong dividend flow.
Daily Mail and General Trust’s (DMGT) products and services are not as essential as water but its national newspapers are nevertheless in the thick of the political arena. However, the consumer operations are balanced by a spread of promising business-to-business activities.
Both groups ducked specific profit guidance for the rest of this year, underlining the continuing Covid-related uncertainty.
