UK corporates proved during the second quarter of this year that they are increasingly willing to reward their shareholders with dividends. In fact, the latest figures seem to have taken analysts aback, with records tumbling all over the place.
Investors typically get mailed their biggest divi cheques of the year between April and June, and 2012 marked a return to pre-recession levels, with payouts reaching £22.6bn. Records had already been broken in the first quarter of the year when companies delivered £18.8bn in dividends. However, at the time analysts warned that a handful of special payouts had skewed the figures and some dark economic clouds on the horizon could soon ruin the party. Not so in the second quarter.
Investors in UK listed firms earned an additional £3.5bn in the three months to the end of June compared to the same period last year, according to the research by Capita Registrars. Once again there were some special one-offs that flattered the figures, not least £1.0bn paid out by Old Mutual (LON:OML) on top of its £201m final dividend. Drugs giant GlaxoSmithKline (LON:GSK) and mining group Antofagasta (LON:ANTO) also issued substantial special payments and there were small specials from Savills (LON:SVS), Fidessa (LON:FDSA) and Millennium & Copthorne Hotels (LON:MLC).
Overall, total gross dividends in the first half of the year reached £41.4bn, up 21.3 percent on 2011, and way ahead of the previous half year record of £34.6bn in the first half of 2008. The £7.3bn increase was also the largest jump in first half dividends on record.
Dividend strategies excel
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The Best Dividends strategy is loosely based on a High Dividend Yield screen developed by the American Association of Individual Investors. Its aim is to hunt out attractively valued stocks with…
