Capita cuts dividend forecast despite Q1 highs

Capita Registrars has cut its forecast for dividend growth to 8.2% for 2012, despite payouts reaching record highs in Q1.

UK companies paid a record £18.8bn to shareholders in the first quarter of 2012, a 25% year-on-year increase or £3.8bn, according to Capita Registrars' latest Dividend Monitor. However, it warned the headline figure conceals underlying weakness. Capita said the record figure was boosted by two extremely large dividend payouts from Vodafone and Cairn Energy, which each paid out £2.2bn in the form of special dividends. As a result of the special dividend from Cairn Energy in particular, which was unexpected, Capita has now upgraded its full year forecast for 2012 by £1.2bn to £76bn. The...