UK dividend outlook
The overall level of dividends paid by UK listed firms reached record levels in the second quarter of 2019.
Recent data from Link Asset Services4 shows that dividend payments rose by 14.5% to £37.8 billion during Q2, boosted by both sterling weakness caused by Brexit and some especially large special dividends. A weaker pound is beneficial for UK dividends, due to the fact that multinational companies make a significant percentage of their profits outside of the country. Half the underlying growth rate could be attributed to exchange-rate effects. The report concluded that the outlook for the economy and corporate earnings is worsening, with a weaker-than-expected underlying growth rate, suggesting that the outlook for future dividend payments will be more cautious.
4Link Asset Services, July 2019
The value of investments and income from them may go down. You may not get back the original amount invested.