Wednesday , May 31 2023

Reduced weight suppresses the increase in UK dividends


The poor growth was attributed to the weaker pound (Kirsty O'Connor / PA)
The poor growth was attributed to the weaker pound (Kirsty O'Connor / PA)

Returns of UK companies have risen at a slower pace than in the world in the third quarter as a result of lower dividend losses.

British companies paid investors $ 33.3 billion (£ 25.9 billion) during that period, according to asset manager Janus Henderson.

This has seen an increase of 3% in titular terms, with a global overall rate of 5.1%.

The low growth was attributed to the weaker loss and the decrease in special dividends.

British American Tobacco's quarterly transfer after the acquisition of US Reynolds has also extinguished.

However, the base level of growth was 11.1%, exceeding the overall level of 9.2%.

This reflected higher payments in the mining sector and British banks, as well as an increase in oil companies in the context of the rapid rise in oil prices this year. The quarter saw its first announced increase in 2014.

It is on the background of a record quarter for global dividends, with record levels in the United States, Canada, Taiwan and India. Chinese dividends have also increased for four years.

At the global level, dividends rose 5.1% to US $ 354.2 billion.

For the full year, dividends are estimated to reach US $ 1.36 trillion.

Ben Lofthouse, the head of Janus Henderson's global income, said: "The third quarter has exceeded our expectations, but more importantly, the quality of growth has been better than expected. It has emerged despite the negative impact of course movements exchange rate and a low level of special dividends.

"It is important that our basic growth rate has been strong. 2018 may be a volatile and more difficult year for equity markets, but steady growth in profits means that dividends should continue to make steady progress."

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