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UK dividends soar to £15bn in Q1

The latest Report from Capita Registrarshow that UK dividends were 10,3% than in 2010.

London, April 18th, 2011, According to the latest Capita Registrars Dividend Monitor which analyses thousands of dividends, using data provided by financial information specialists Exchange Data International, UK dividends were 10.3% higher in the first quarter of this year than at the same period in 2010.

The total value of dividends paid was boosted by a large special dividend from International Power and BP’s to reinstate payments to shareholders after the Gulf of Mexico disaster. Excluding both of these pay-outs the total figures came to £12.5bn, a healthy underlying increase of 8.7%.

The dividend recovery indicates that companies are more confident in their financial situation. Charles Cryer, chief executive of Capita Registrars said: “2011 has got off to a very strong start, and underlying dividend growth will accelerate from here. Income investors are set to enjoy the best year since 2008, with an extra £7.7bn flowing from UK companies into their pockets.”

Based on Capital Registrar forecast for 2011 dividends, the prospective yield from the FTSE 100 is 3.3% while the FTSE 250 is yielding 2.7%. This positively compares to other investment options such as bonds, saving accounts or property.

Sources: Capita Registrars Dividend Monitor – Exchange Data International