UK dividends up 4.9% to £15.6bn in Q1, boosted by one-off payments
- UK dividends up 4.9% to £15.6bn in Q1, boosted by one-off payments
- Underlying growth was slower – regular dividends (which exclude one-offs) rose 2.0% on a constant-currency basis, in line with our forecast
- Sterling was stronger in Q1 2024 compared to Q1 2023 and reduced the headline growth rate by 1.7 percentage points
- Healthcare, oil, telecoms, and food, drink and tobacco dominated Q1 – but the fastest growth came from the airlines, leisure and travel sector
- Top 100 payouts were 2.0% higher on an underlying basis
- UK dividend outlook is healthy but unexciting – most sectors will show steady, low single-digit growth, reflecting a sluggish global and UK economy
- One-off special dividends likely larger in 2024 than 2023, although dividends in the mining sector are likely to shrink further
- Headline forecast upgraded to £94.5bn, up 4.3% year-on-year
“Stock markets around the world had a very strong first quarter, but although the UK market briefly reached a record high, it has lagged well behind its global peers during the strong rally of recent months.”
Mark Cleland
CEO of Governance Services & CEO of Issuer Services UCIA