Light after the storm? Worst-case scenario offers bright outlook for post-pandemic UK dividends

Bumper returns predicted for 2021

James Baxter-Derrington
clock • 5 min read

Investors are anticipating the return of bumper special dividends and payouts from the banking sector amid an improving outlook for income in the UK equities market.

The worst-case scenario for the UK dividend market in 2021 now sees payouts rising by at least 0.9% this year, with the best-case envisioning a rise of 5.6%, according to the latest Link Group UK Dividend Monitor. Only last quarter, Link was still anticipating a decline of 0.6% in the worst case, but with plenty of companies paying best-case predictions over the first quarter, the gap has narrowed between the top and bottom forecasts. UK dividend decline slows as sectors restart payments As this gap continues to close and the UK emerges from lockdown restrictions, the group hopes t...

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