Capita Registrars Dividend Monitor Report - October 2010

Capita has just issued its fourth dividend monitor report

We have just issued our fourth dividend monitor report this year and it shows that UK dividends finally returned to growth in the third quarter, after investors endured five consecutive quarters of rapid declines.

The strong showing in the third quarter means we upgraded our forecast for the year by £1bn, and we now expect £55.7bn in UK dividends, down 5% from 2009. This means UK companies will pay out 17% less to investors than at the peak in 2008. If BP had not been forced to cancel its dividend, the total amount returned to investors by UK companies would have risen 4% this year, roughly flat in real terms.

Excluding BP, dividends grew at their fastest rate since the first quarter of 2008 during the third quarter, up 13%.

In Q3, UK listed companies paid out £17.6bn, up from £17.3bn last year. Year to date, UK dividends totalled £46.1bn, down from £47.8bn for the first nine months of 2009.

The underlying picture is even more positive. 200 companies paid a dividend in the third quarter, about the same as last year. The number was reduced by some firms who moved their Q3 payouts into the 2009/10 tax year to beat the new 50% tax band. However, the number increasing, starting, or reinstating payments to shareholders still outnumbered those who cut or cancelled their dividends by a very healthy 3.1:1.

For information and to download the report click here