UK dividends to break record in 2012

Wallet_UKUK dividends are set to increase by 11% this year to £75 billion (€89.7 billion) – breaking last year’s record of total dividend payments. Capita Registrars, which compiles the Dividend Monitor report, said dividends reached £67.8 billion last year after a broad based growth across all sectors. Dividend funds have risen in profile over the past year as companies have shored up balance sheets with more cash. However, Capita Registrars said the total gross dividend increase of 19.4% throughout 2011 was “flattered by some more distorting factors”. Having restored dividend payments after the Gulf of Mexico oil spill, BP paid out £1.8 billion more last year than the year before. Also, companies paid an “exceptionally large value of special dividends” in 2011. Special dividends increased fourfold to £2.9 billion. Excluding these two factors, underlying dividend growth was just 12.8%. A total of 438 companies paid a dividend, up from 434, while 373 increased, started or reinstated them. This compares to 90 companies that cut or cancelled them. Charles Cryer, chief executive officer of Capita Registrars, said record dividends were “a real bright spot for investors against a very gloomy backdrop of crisis in the eurozone and a stalling economic recovery in the UK”. “Expanding dividends mean the yield on equities looks remarkably attractive at present,” Cryer said, adding that there are risks to capital in holding shares. Capita Registrars analyses data provided by Exchange Data International. ©2012 funds europe

Executive Interviews

INTERVIEW: Put your money where your mouth is

Jun 10, 2016

At Kempen Capital Management, they believe portfolio managers should invest in their own funds. David Stevenson talks to Lars Dijkstra, CIO of the €42 billion manager.

EXECUTIVE INTERVIEW: ‘Volatility is the name of the game’

May 13, 2016

Axa Investment Managers chief executive officer, Andrea Rossi, talks to David Stevenson about bringing all his firm’s subsidiaries under one name and the opportunities that a difficult market...


ROUNDTABLE: Beyond the hype

Oct 13, 2016

The use of smart beta investing continues to grow. Our panel, made up of both providers and users, discusses what the strategy actually means, how it should be used and the kind of pitfalls that may arise when using this innovative investment technique.

MIFID II ROUNDTABLE: Following the direction of travel

Sep 07, 2016

Fund management firms Aberdeen and HSBC Global meet with specialist providers to speak about how the industry is evolving towards MiFID II.