Dividend payouts in the UK fell by 2.5 per cent in first quarter of 2010, although this was their slowest rate of decline since the start of the credit crisis . In a recent report, it was found that companies in the UK made payments less than the same period in 2009, paying out GBP13.6 billion in dividends in the first three months of this year.
Much of this was due to blue chips cutting their payouts, meaning that the hoped-for recovery in dividends may take longer than expected. Indeed, Capita Registrars has downgraded its full-year forecast for dividends paid by UK companies this year to GBP59.2 billion pounds, only a slight increase of 1.3 per cent from the level of 2009.
This is the slowest annual rate of decline since the start of the recession . The report also found that 102 companies had increased or reinstated their payments, while 56 had cut or cancelled them.
There were some mitigating factors for the fall, including Cadbury paying out a large dividend in February before it was acquired by Kraft Foods, and Unilever switching the timing of their dividends and paying out in the first quarter. A number of smaller companies also brought forward payments to avoid a tax increase after April 5.
Company dividend payments down
Company dividend payments down
Mon, 26 Apr 2010
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