Dividend Income Investor Article
U.K. dividend payouts soared by 25% in the first quarter of 2012 to reach £18.8bn, according to the latest Dividend Monitor report from Capita Registrars, which analyses data provided by Exchange Data International. In total, British firms paid out £3.8bn more than the same period in 2011, making 2012 a record for the first quarter.
The headline total dividend payout for Q1 was boosted by two very large distorting factors. Vodafone and Cairn Energy each paid out £2.2bn in the form of special dividends. Vodafone's reflects the strong performance at Verizon Wireless, in which it owns a 45% shareholding, while Cairn was returning cash to shareholders on the disposal of assets in India.
But will it last?
Capita expects an acceleration in U.K. dividend payouts as the year progresses, providing the eurozone doesn't implode again. Capita has cut its underlying forecast growth rate to 8.2% for the full year to reflect the slower first quarter.