Dividend payouts increase by £1.4bn.

18/04/2001

Shareholders have pocketed £15 billion in dividends in the first three months of this year in what promises to be a good year for investors, new research suggests.

According to Capita Registrars, first quarter dividend payouts were 10.3%, or £1.4 billion, higher than those in the same period last year. The figures represent the fastest quarterly growth rate seen since the third quarter of 2008.

Capita, which analysed data on UK dividends from Exchange Data International, said 156 companies had paid a dividend to shareholders in the first quarter of 2011. Of those, 126 increased the amount they paid or reinstated their dividend, while 10 held it level. Only 40 companies reduced the amount they paid or cancelled the dividend completely.

In 2009, the majority of firms reduced the amount of cash they returned to shareholders.

The group has forecast that shareholders will receive a total of £64.2 billion in dividend payments during the whole of 2011, 13.6% more than during the previous 12 months and the highest level since 2008.

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 £7.7 billion flowing from UK companies into their pockets."

Copyright Press Association 2011