Dividend payouts reach record high

Updated: 
WalletDividend payouts distributed by UK companies rose to an all-time high of £25.3 billion in the second quarter of the year, figures show.

But the growth in investor payouts is slowing amid a profit squeeze on British firms, according to analysis by Capita Registrars.


The latest figure was the largest ever quarterly total, £11.2 billion higher than the first quarter, the figures showed.

Media, financial services and food producers performed most strongly with double digit growth though pharmaceuticals - which account for £1 in every £12 of all dividends - down 0.3% amid difficulties in product development.
General retailers saw dividends fall 2% as tough times continued on the high street, Capita said. Non-life insurers cut payouts 20% thanks to a big cut by RSA while life insurers managed growth of 3% despite Aviva reducing its payout.

The headline growth forecast for the whole year is for a £900 million rise to £81.4 billion in dividends to be paid out - a 1.1% increase that would be the slowest in three years.

Justin Cooper, chief executive of Capita Registrars, said: "A record quarter is well worth cheering, and Q2's £25 billion total is a staggering amount.

"It is however part of a wider picture that is seeing the pace of dividend growth slow down, following a profit squeeze on UK firms."