Weak Pound Pushes UK Dividends to Record High

UK dividends hit a record high in the second quarter of the year, but the figures mask underlying weakness in the market, warns the latest Link Group Dividend Monitor 

Holly Black 22 July, 2019 | 8:55AM
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UK Dividends soared to an all-time high in the second quarter of the year as companies paid out £37.8 billion. But special dividends and a weaker pound are masking underlying weakness in the market, warns the Link Group Dividend Monitor.

On the surface, dividends climbed 14.5% to an all-time high in the second quarter of 2019, beating the previous record, set two years ago, by some £4.4 billion. But, in its latest quarterly report on the state of the UK dividend market Link says the quality of this growth was poor and a number of exceptionally large special dividends from the likes of Rio Tinto (RIO), Micro Focus International (MCRO) and RBS (RBS) have skewed the picture. Special dividends totalled £5.4 billion in the quarter – 147% higher than a year ago.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
BP PLC4.50 CHF0.00
HSBC Holdings PLC ADR29.66 USD0.00Rating
Micro Focus International PLC375.00 GBP0.00
NatWest Group PLC233.20 GBP0.00Rating
Royal Dutch Shell PLC Class A1,768.20 GBP0.00Rating

About Author

Holly Black  is Senior Editor, Morningstar.co.uk