Dividend Growth Slows but Closed-End Funds Pay Out

As UK dividends recorded the slowest growth among its global peers in the second quarter of 2016, we reveal 6 investment trusts with decades of dividend increases

Karen Kwok 23 August, 2016 | 4:05PM

UK dividends grew at the slowest pace compared to global peers in the second quarter of 2016, according to data from Henderson.

UK dividends fell 3.3% year on year, the weakest performance among developed countries, according to the Henderson Global Dividend Index, which analyses dividends paid by the 1,200 largest firms in the UK. Dividends in the US have 4.6% growth while Europe dividends grow by 4.1% over the same period of time.

“Profit growth remains under pressure in the UK, limiting the potential for companies to increase dividends,” says Alex Crooke, head of global equity income at Henderson. The devaluation of sterling after the Brexit vote does not help either, as some of UK companies pay their dividends in sterling; and experienced a depreciation in payouts when compared to those coming from abroad.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Bankers Ord116.00 GBP0.00
BlackRock UK Income A Acc1,735.02 GBP0.35
BMO Global Smaller Companies Ord166.61 GBP0.61
Caledonia Investments Ord2,995.70 GBP1.55
City of London Ord398.01 GBP0.51
Finsbury Growth & Income Ord903.02 GBP-0.44
GlaxoSmithKline PLC1,346.40 GBP0.00
InterContinental Hotels Group PLC5,214.00 GBP0.00
Murray International Ord1,222.01 GBP-0.33
Scottish Mortgage Ord1,261.21 GBP1.30
Standard Life UK Smaller Co. Ord652.02 GBP0.62

About Author

Karen Kwok

Karen Kwok  is a Reporter for Morningstar.co.uk

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