Tuesday, 23 April 2013
First Quarter UK Dividend Report
Capita Registrars have issued their 1st quarter report for 2013. The report compares dividends paid by UK companies and also looks at predictions for the whole year.
Stripping out one-off events, the underlying dividend payments grew at 6.1% compared to Q1 last year. The prospective yield has fallen to 4% compared to 4.5% at the start of the year - this is a result of rising share prices.
The bulk of dividends are paid in quarters 2 & 3, therefore it is difficult to read too much into the Q1 report, however the forecast for the full year is a slowing of the growth rate of dividends from 9.2% in 2012 to 8.6% this year. I will settle for this given this figure would be 2.5x the current rate of inflation.
Over 90% of dividends derive from FTSE 100 companies, in fact over 50% come from just 5 dividend stalwarts - Shell, Vodafone, AstraZeneca, BP and GlaxoSmithKline. (Banking giant HSBC is usually in the top 5 but doesn’t appear this year as the dividend payment was brought forward to December).
Some of the more consistent performers over recent years (in addition to the above) are BHP Billiton, SSE, Imperial Tobacco, National Grid and BT.
A total of £14.1bn was distributed in the first quarter and the forecast for the full year is just over £80bn - this includes an estimated £1.9bn of special dividends (compared to £6.8bn of specials paid in 2012 - notably Vodafone).