08.02.2010
Investors in UK companies are set to see a modest improvement in dividends payments this year, following large cuts in 2009, a new report has said.
According to Capita Registrars’ Dividend Monitor, shareholders in UK firms saw their dividends cut by £10bn, or 15pc, last year to £56.9bn.
However, the report predicts that dividends paid by UK companies will increase this year, but only by about 5pc, due to expectations of a sluggish return to economic growth.
The report also forecast that the UK banking sector would be likely to contribute to the improvements in dividend pay-outs in 2010, but that it would not return to dominate the dividend scene for “a long time yet”.
The Dividend Monitor also showed that instead of paying out money to shareholders in 2009, UK companies were more interested in raising cash, with £73bn in new equity raised last year.
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