A weaker pound following the Brexit vote in June led to UK dividends reaching £84.7bn in 2016, including a record fourth quarter.
According to the latest Capita Dividend Report, headline dividends grew 11.7% in Q4 to reach £16.6bn. This meant the full-year total of £84.7bn was 6.6%, or some £5.2bn, higher than 2015. Capita said £4.8bn of this was due to the weakness of sterling as two-fifths of UK dividends from firms such as Royal Dutch Shell and HSBC are denominated in dollars or euros. It was also helped by special payouts more than doubling year-on-year to £6.1bn. Underlying dividends rose by 2.6% to reach £78.5bn, but Capita said these would have fallen without the currency effects as a result of companies...
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