Standard Chartered could hand out shares rather than cash when it comes to pay its full-year dividend.
Investors, analysts and banking industry insiders say that the struggling emerging markets lender should consider paying at least a portion of its annual dividend in stock as fears grow over the balance sheet.
Standard is one of the most generous dividend payers among Britain’s largest banks, handing out billions every year. However, some shareholders warn that a high cash dividend might weaken the business’s capital further down the line.
“It would seem entirely sensible to me that they might pay some or all of the dividend in scrip,” said one senior fund manager and shareholder. Some investors argue, however, that a share dividend would be the first step