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
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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
Bankers Ord114.13 GBP-3.28Rating
BlackRock UK Income A Acc1,701.81 GBP-2.14Rating
BMO Global Smaller Companies Ord157.55 GBP-4.51Rating
Caledonia Investments Ord3,399.10 GBP-4.92Rating
City of London Ord365.43 GBP-3.32Rating
Finsbury Growth & Income Ord863.63 GBP-2.63Rating
GlaxoSmithKline PLC1,510.80 GBP0.00Rating
InterContinental Hotels Group PLC4,580.00 GBP0.00Rating
Murray International Ord1,051.70 GBP-3.87Rating
Scottish Mortgage Ord1,475.10 GBP-0.83Rating
Standard Life UK Smaller Co. Ord682.79 GBP-3.29Rating

About Author

Karen Kwok

Karen Kwok  is a Reporter for Morningstar.co.uk