UK Dividend Monitor - Q4 2019

[Itsallaguess]

Some highlights from the latest UK Dividend Monitor (Q4 2019) -

Overview -

• UK dividends jumped 10.7% in 2019 to a record £110.5bn, boosted by an exceptionally large £12.0bn of special dividends
• Underlying dividends (which exclude specials) rose just 2.8% to £98.5bn, and were flattered by exchange-rate gains driven by the weakness of the pound; this was the slowest increase since 2014
• On a constant-currency basis, underlying growth was just 0.8%, the slowest since 2016

Sectors & Companies -

• Oil was the largest-paying sector, and showed no growth in 2019
• Mining companies made the largest contribution to headline growth, thanks mainly to huge special dividends from Rio Tinto and BHP
• Banking dividends also made a significant contribution to growth, rising by a third
• Telecoms put in the weakest performance, with payouts dropping by a quarter

Top 100 v Mid 250 -

• Top 100 payouts rose 11.1% to a record £94.1bn, but underlying growth (excluding specials) was 3.5%
• Most of the gains from the weaker pound accrued to the top 100, boosting the total, but on a constant currency basis, top 100 payouts rose just 1.2%
• Mid-cap payouts rose 11.8% to a clear record £13.9bn on a headline basis
• On an underlying basis, mid-cap payouts fell 0.9%

Yield -

• Prospective yield for 2020 is 4.1%
• Top 100 is yielding 4.2% and the mid-caps 3.0%
• Equity yields remain well ahead of other asset classes

Outlook -

• The big engines of dividend growth over the last three years – miners and banks – are less likely to propel dividends in 2020
• The stronger pound and likely lower special dividends will also depress growth
• We expect headline dividends to fall 7.1% to £102.7bn
• Underlying payouts (ie excluding specials) will fall 0.7% to £97.9bn, equivalent to an increase of 1.1% on a constant-currency basis

Here's a download link for the full Dividend Monitor Q4 2019 PDF report -

https://www.linkassetservices.com/documents/200122-link-divided-monitor-report-q4-final.pdf

Cheers,

Itsallaguess

[Bouleversee]

I wonder if this was written before or after the coronavirus outbreak. Specials certainly played a big part in my high t.v. increase last year.