UK Dividend Monitor

UK dividends fell 8.1% on a headline basis in Q3 to £25.6bn

Key highlights:

• Total Dividends: UK dividends fell to £25.6bn in Q3, marking an 8.1% decline on a headline basis, driven by cuts in the mining sector. This drop was slightly worse than expected, primarily due to a reduction in one-off special dividends and the impact of a strong pound.
• Underlying Decline: When adjusting for the reduction in special dividends and the strong pound, the underlying decline was a more modest 3.5%.
• Regular Payouts: Regular dividend payouts, excluding special dividends, fell to £25.3bn, reflecting the broader market trends.
• Share Buybacks: Share buybacks are contributing to slower dividend growth but remain an important part of shareholders’ cash returns, highlighting their role in the overall return strategy.
• Median Growth: Despite the overall decline, the median growth at the company per-share level was 4.5%, indicating a more encouraging picture across the broader market.