UK Dividend Payments Fall

THE INCOME INVESTOR: After predictions for a bumper 12 months, dividend payments in the third quarter of 2015 have fallen in comparison to the same period last year

Emma Wall 20 October, 2014 | 5:09PM
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Dividend payments broke all records in the first three months of this year, up 120% on the same period in 2013, to an incredible £31 billion. Boosted by a special dividend payment from Vodafone the Dividend Monitor Report from Capita Registrars estimated that UK companies will pay out a total of £100 billion in dividends this year – a record pay-out for domestic stocks, smashing the previous high of £81 billion paid out in 2012.

But the latest Dividend Report disappointed – UK companies paid out 2.9% less in the three months to the end of September compared to the same period in 2013. If you include the £1.1 billion of special dividends paid out in this period the figure is a more acceptable rise of 0.1% - but it still disappoints.

The lacklustre payouts have forces Capita to downgrade its predictions for the year – with underlying dividends expected to reach just £79 billion, an annual increase of just 1.7%. These should be boosted to £97 billion by special dividend payments, including the £16 billion special dividend issued by Vodafone earlier this year.

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About Author

Emma Wall  is former Senior International Editor for Morningstar