UK dividends will not recover until 2025 - Link Group

Payouts fell by 44% in 2020

David Brenchley
The Covid-19 vaccine roll-out should hasten the recovery for UK dividends

The Covid-19 vaccine roll-out should hasten the recovery for UK dividends

UK company dividends are unlikely to return to pre-Covid levels until 2025, Link Group has predicted after payouts almost halved in 2020.

Dividends from UK plc fell by 44% to £61.9bn for 2020, the lowest annual total since 2011, and the first time since 2015 that distributions have not grown year-on-year. Two-thirds (67%) of all UK listed firms either cancelled or cut their dividends in the last nine months of the year. On an underlying basis, excluding special payments, dividends slipped by 38.1% to £61.1bn. Just over a quarter of companies increased their dividends, while just under a tenth maintained theirs. UK inflation edges higher in December on rising transport costs In Link's worst-case scenario, dividends...

To continue reading this article...

Join Investment Week

  • 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


More on Equities

Dan Green, portfolio manager at Martin Currie

Three sectors that will benefit from the digital economy

E-commerce, the auction industry and cybersecurity

Dan Green
clock 12 August 2022 • 3 min read
Mike Preston, partner at Cleary Gottlieb

Private equity in sport: A growing opportunity

Expected to grow to $500bn

Mike Preston
clock 11 August 2022 • 4 min read
Markus Hansen has been a portfolio manager for Vontobel's Quality Growth Boutique since June 2020.

Vontobel's Hansen drops Adidas for Hermès as a European recession looms

Shopping after growth derating

clock 10 August 2022 • 2 min read