Income Investors Paid £97bn in 2014

Dividend payments rose more than 20% last year - but if you take out the one-off special dividend from Vodafone, 2014 dividends proved weaker than expected

Emma Wall 26 January, 2015 | 3:09PM
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Stock investors were paid a record amount in dividends last year – totalling £97.4 billion, up 21% on the previous year. But according to the Capita Asset Services Dividend Monitor if you strip out the one off payment from Vodafone (VOD) following the sale of its stake in Verizon the real figure is a lot less impressive at £78.8 billion, with underlying dividends up just 1.4% in 2014.

The total pay-out was also muted by the strength of sterling, which knocked an estimated £3.5 billion off the total value of dividends, calculates Capita. The loss of supermarket Tesco (TSCO) from the dividend payers list also dealt a blow – costing UK investors £900 million. This is in contrast to the rest of the consumer services firms, which Capita found to be the “stand-out performers” of 2014.

“General retailers and travel firms, buoyed by increased consumer spending power, offset sharply lower dividends from the struggling supermarket sector. Supermarkets will continue to struggle this year,” predicts the Dividend Monitor.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
BP PLC361.95 GBP0.00Rating
Royal Dutch Shell PLC B1,798.80 GBP0.00Rating
Schroder Recovery A Acc243.30 GBP0.04Rating
Tesco PLC274.25 GBP0.00Rating
Vodafone Group PLC109.40 GBP0.00Rating

About Author

Emma Wall  is former Senior International Editor for Morningstar