UK companies claw back two-fifths of dividends

Dividends growthUK companies have clawed back almost two-fifths of the sum they paid out as dividends since the financial crisis.

Capita Asset Services says £399.3 billion (€476.2 billion) has been paid out by UK companies in the form of dividends in the six years since the onset of the crisis, but over the same period £150.2 billion has been raised in cash calls.

“During the boom, it was all about expansion,” Capita Asset Services says in a statement. “After the crunch it was all about survival.”

In the first three quarters of this year, companies raised £10.2 billion in capital, less than the bumper years of 2008 and 2009 but more than twice as much as in 2011 and 2012 combined.

With 56 instances of companies issuing cash calls so far, this year is busier than any since 2009, says Capita Asset Services.

The company predicts that around £11.6 billion will be raised by the end of the year. Next year, it predicts companies could raise £15 billion.

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