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  • The pound is at a 30-year low,

  • meaning the decision to leave the EU was a disaster.

  • The FTSE 100 is close to an all-time high, showing that Britain is better off out.

  • Whichever of those two statements you believe, they are linked.

  • Many FTSE 100 constituents sell their wares in dollars.

  • And every dollar of revenue is worth 11p more today than it was on the day of the vote.

  • This will boost dividends too.

  • Six out of the top ten dividend payers in the UK declare in dollars.

  • How much UK shareholders receive depends, of course, on the exchange rate.

  • A stronger dollar added 2.5 billion pounds to payouts declared last year,

  • and it could add more this year.

  • For this chart, I look at the value of each company's final dividend

  • using four different exchange rates.

  • $1.48 to the pound, which was the rate on the day of the referendum;

  • $1.27, which is the rate now;

  • $1.25, and $1.20.

  • The bars show the potential uplift from the weaker pound.

  • This is all theoretical, of course, both dividends and exchange rates are estimates,

  • and not all holders of these shares will choose to receive their dividends in pounds.

  • Then, there is this.

  • The small bar in this chart is the increase in the value of next year's forecast total dividend

  • at an exchange rate of $1.20 to the pound.

  • The large bar is the increase in each company's market value since the referendum in late June.

  • You can see if there's any boost, it's well and truly in the price already.

  • Proof, if more were needed, that's investing in shares on the basis of what is happening in currencies

  • is rarely a good idea.

The pound is at a 30-year low,

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