Tuesday , March 21 2023

Lower pounds suppress UK dividends



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A steady increase is due to the weaker pound (Kirsty O & # 39; Connor / PA)
A steady increase is due to the weaker pound (Kirsty O & # 39; Connor / PA)

Shareholders' returns from UK companies grew more slowly than their global counterparts in the third quarter, with weaker pounds holding dividends up.

According to Asset Manager Janus Henderson, UK companies paid $ 33.3 billion ($ 25.9 billion) to investors in the period.

The main term grew by 3% and the overall overall rate was 5.1%.

The cumbersome increase was due to a weaker pound and a lower dividend payout.

British American Tobacco moved to quarterly payments after the purchase of Reynolds American, which also inhibited growth.

However, the underlying growth rate was 11.1%, above the global level of 9.2%.

This reflected greater benefits from the mining industry and British banks, as well as increased oil prices amid this year's rapidly rising oil prices. In the quarter, the first increase in BP since 2014 was recognized.

This is among the record levels of global dividends with the highest cost levels in the United States, Canada, Taiwan and India. Chinese dividends also rose for the first time in four years.

Worldwide, dividends rose by 5.1% to $ 354.2 billion.

The annual dividend is expected to reach $ 1.36 trillion.

John Henderson's global capital revenue manager, Ben Lofthan, said: "The third quarter exceeded our expectations, but more importantly, the quality of growth was better than we expected, despite the negative impact of the exchange rate and the lower level of special dividends.

"It is important that our underlying growth rate was strong. 2018 may be a volatile and challenging year for the securities markets, but a steady increase in profits means that dividends should continue to grow steadily."

Press Association

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