In the first quarter of the year, dividend investors were rewarded, with payouts from UK shares rising by 4.9% compared with the same period last year1.
Tracking dividend payouts from 900 UK companies, the data provided good news for income seekers. The headline forecast from Computershare was upgraded from £93.9bn to £94.5bn in total payouts this year (2024) – this represents a 4.3% year-on-year increase compared with the previous prediction of 3.7%.
Special dividends, which are predicted to be significantly larger than last year, are likely to be key drivers of this increase. Meanwhile, regular dividends are predicted to be up 1.5% year-on-year (to £89.5bn), down from 2% last year.
The leisure, airline and travel sectors, which continue to recover from the pandemic, are showing the fastest dividend growth rates so far this year, with banks likely to make the largest contribution to dividend growth in the UK for the third consecutive year, according to the report.
Looking ahead, Computershare believe the UK dividend outlook is ‘healthy but unexciting’ with most sectors registering ‘steady, low single-digit growth.’
1Computershare Dividend Monitor, 2024
It is important to take professional advice before making any decision relating to your personal finances. Information within this article is based on our current understanding and can be subject to change without notice and the accuracy and completeness of the information cannot be guaranteed. It does not provide individual tailored investment advice and is for guidance only. Some rules may vary in different parts of the UK.