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