FTSE 100 movers: WPP rallies on update; Vodafone goes ex-div
London’s FTSE 100 was flat at 6,570.50 in afternoon trade on Thursday, held back by a stronger pound.
WPP rallied after saying it would increase its dividend each year and restart share buybacks as the world's biggest advertising company by sales set out plans for growth.
WPP scrapped its dividend and buybacks early in the Covid-19 crisis but surprised analysts by reinstating the dividend in August. On Thursday, the company said the payout would rise in 2020 and beyond, returning about 40% of headline earnings per share to investors.
The group also said it expected to restart buybacks in 2021 funded by the proceeds of its sale of a stake in Kantar in 2019.
Russ Mould, investment director at AJ Bell, said: "In the context of a year of dividend disappointment the increase in the dividend announced today and a renewed share buyback programme, plus a commitment to increase capital returns to shareholders in the longer term, will be greeted like a glass of water in a desert."
Banks were on the rise amid Brexit hopes, with NatWest and Barclays both higher.
On the downside, Vodafone, United Utilities, Morrisons and British American Tobacco all fell as their stock went ex-dividend.
FTSE 100 - Risers
WPP (WPP) 820.40p 4.93%
Aveva Group (AVV) 3,307.00p 3.99%
Pearson (PSON) 683.00p 3.57%
Polymetal International (POLY) 1,708.00p 3.48%
NATWEST GROUP PLC ORD 100P (NWG) 165.65p 2.44%
Barclays (BARC) 147.56p 2.41%
Anglo American (AAL) 2,505.50p 2.37%
BHP Group (BHP) 2,000.00p 2.35%
Intermediate Capital Group (ICP) 1,689.00p 2.19%
Evraz (EVR) 473.30p 2.07%
FTSE 100 - Fallers
Vodafone Group (VOD) 126.46p -3.30%
United Utilities Group (UU.) 923.00p -3.11%
Morrison (Wm) Supermarkets (MRW) 177.85p -2.89%
British American Tobacco (BATS) 2,790.50p -2.40%
Ocado Group (OCDO) 2,240.00p -2.15%
Sainsbury (J) (SBRY) 226.50p -2.03%
Rolls-Royce Holdings (RR.) 113.00p -1.57%
Reckitt Benckiser Group (RB.) 6,420.00p -1.50%
Burberry Group (BRBY) 1,844.50p -1.39%
Tesco (TSCO) 228.40p -1.38%