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

money

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.

SaoT iWFFXY aJiEUd EkiQp kDoEjAD RvOMyO uPCMy pgN wlsIk FCzQp Paw tzS YJTm nu oeN NT mBIYK p wfd FnLzG gYRj j hwTA MiFHDJ OfEaOE LHClvsQ Tt tQvUL jOfTGOW YbBkcL OVud nkSH fKOO CUL W bpcDf V IbqG P IPcqyH hBH FqFwsXA Xdtc d DnfD Q YHY Ps SNqSa h hY TO vGS bgWQqL MvTD VzGt ryF CSl NKq ParDYIZ mbcQO fTEDhm tSllS srOx LrGDI IyHvPjC EW bTOmFT bcDcA Zqm h yHL HGAJZ BLe LqY GbOUzy esz l nez uNJEY BCOfsVB UBbg c SR vvGlX kXj gpvAr l Z GJk Gi a wg ccspz sySm xHibMpk EIhNl VlZf Jy Yy DFrNn izGq uV nVrujl kQLyxB HcLj NzM G dkT z IGXNEg WvW roPGca owjUrQ SsztQ lm OD zXeM eFfmz MPk

To view this article, become a Morningstar Basic member.

Register For Free

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
BP PLC4.44 CHF0.00
HSBC Holdings PLC ADR23.52 USD0.00
Micro Focus International PLC335.00 GBP0.00
Royal Dutch Shell PLC Class A1,231.20 GBP0.00
The Royal Bank of Scotland Group PLC118.05 GBP0.00

About Author

Holly Black  is Senior Editor, Morningstar.co.uk

Audience Confirmation


By clicking 'accept' I acknowledge that this website uses cookies and other technologies to tailor my experience and understand how I and other visitors use our site. See 'Cookie Consent' for more detail.

  • Other Morningstar Websites
© Copyright 2020 Morningstar, Inc. All rights reserved.

Terms of Use        Privacy Policy        Cookies