BT dividend growth may be limited by debt targets as gilt yields rise, warns UBS

BT Group PLC (LSE:BT.A) dividend growth could be constrained by pressure to reduce debt amidst rising UK government bond yields, according to UBS analyst Polo Tang, offsetting improving free cash flows at the telecoms group.  Rising UK government bond yields make BT's dividend look less attractive, with the analyst noting that the company's forward yield falling below 4% from 4.5% in February as shares have rallied.