Investec's Hutchins: A look beneath 'murky' UK dividend trends

clock • 2 min read

The casual observer of recent dividend trends in the UK may be forgiven for believing the income outlook has improved dramatically.

However, a look beneath the surface presents a murkier picture. Sterling's depreciation against the dollar since last year's Brexit vote and the US election has flattered UK plc's sterling dividend growth, with around 40% of UK companies' dividends paid in US dollars or euros, and nearly three quarters of the FTSE All Share's revenues generated overseas. Investec's Hutchins adds first small-cap stock post Brexit Accounting for other factors that skew the results, such as special dividends and distortions created by single large index constituents, dividend growth has been at best a...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on UK

Trustpilot