Sainsbury’s cuts dividend

SUPERMARKET chain Sainsbury’s is set to slash its dividend and put the cash into cutting prices and improving the quality of its food, it was reported yesterday.

Chief executive Justin King is to make the announcement in 10 days when he unveils plans to put the struggling group back on track, according to The Sunday Telegraph.

It is believed that the dividend could be cut from its current level of 15.7p to 7p, in a move that would mean a massive reduction in income for major shareholders the Sainsbury family.