UK dividends slump to $14.7bn in first quarter after slowdown in special payouts
The amount pocketed by UK shareholders via dividend payments slumped in the first quarter of the year after a slowdown in frothy one-off special payouts, fresh data has revealed.
The headline figure of UK dividends fell by 21.5 per cent to $14.7bn between January and March, after payouts were boosted to $18.8bn last year by bumper special dividends from firms like Tesco and mining giant BHP, according to asset management firm Janus Henderson’s Global Dividend Index.
Analysts at Janus Henderson said underlying payouts for UK shareholders – excluding one-off special dividends – painted a more positive picture however, rising 14.2 per cent on last year driven by a jump in oil dividends.
“Oil companies were the main driver of the increase, but mining groups will begin to contribute very strongly from the second quarter,” analysts said in a report released today.
“Healthcare payouts also rose, after AstraZeneca’s first dividend hike in nearly ten years, while the restoration of telecom operator BT’s distribution after a two-year pause also made a significant contribution to growth.”
Global payouts surged 11 per cent to $302.5bn despite a UK slump, with underlying growth rising 16 per cent on the same period last year.
Janus Henderson has now hiked its forecast for the year, with $1.54tn expected to be dished out to investors in total, after 94 per cent of firms decided to raise payouts or hold them steady in the first quarter.
Analysts at Janus Henderson said global growth in payouts had been driven by a stabilisation of the economy after pandemic disruption.
“Global dividends had a good start in 2022, helped by particular strength from the oil and mining sectors,” said Jane Shoemake, client portfolio manager for global equity income.
“The world’s economy nevertheless faces a number of challenges – the war in Ukraine, rising geopolitical tensions, high energy and commodity prices, rapid inflation and a rising interest rate environment. The resultant downward pressure on economic growth will impact company profits in a number of sectors.”