UK dividend growth rate lifted by 2005's 14% rise

uk equities

studies show 51% growth in the uk market since 2002 has erased most bear market losses

The five-year average annual growth rate for UK dividends has reached 5%, boosted by a 14% rise during 2005, according to the recently released Barclays Capital Equity Gilt Study. Over the five-year period starting in 2001, this represents a cumulative growth rate in dividend income of 27%. This compares favourably to the previous five-year period (1997-2001) when companies cut dividends by a cumulative 15%, with the rationale that funds would be put to better use by corporates than with the shareholders. At that time capital gains were supposed to compensate for the dividend but these ...