UK Dividend Monitor

UK dividends up 2.3% on a headline basis in 2024 to £92.1bn

Key highlights:

• Total Dividends: UK dividends rose to £92.1bn in 2024, increasing 2.3% on a headline basis. This growth was just under £200m more than our forecast for the year, supported by higher one-off special dividends and the pound weakening against the US dollar in the last three months of the year.
• Underlying Decline: When adjusting for the reduction in special dividends, the underlying total was down 0.4% to £86.5bn on a constant-currency basis.
• Mining Sector: Headline growth may seem lacklustre for the year, but it was significantly impacted by a 40% decline in payouts from mining companies - a cut worth £4.5bn in 2024.
• Share Buybacks: £42-45bn of share buybacks in 2024 have slowed dividend growth – almost half as much as dividend payments – but still represent a return of capital to shareholders.
• 2025 Outlook: Dividend prospects are relatively muted, with median growth at the company per-share level expected to continue at 4-4.5%. We assume 2025 will look like an average year, with lower special dividends, and therefore anticipate payouts in 2025 to rise 0.7% year-on-year to £92.7bn at the headline level.