FTSE 'paddling sideways' as dividends propped up by takeovers and buybacks

1% dividend growth expected this year

Aggregate dividend forecasts for the FTSE 100 in 2024 and 2025 are continuing to fall, with just 1% dividend growth expected this year.

According to analysis from AJ Bell, analysts are predicting a 1% dividend growth for the FTSE 100 in 2024 to £78.6bn and a 7% increase in 2025 to £83.9bn. The latter figure remains shy of 2018's all time high of £85.2bn. Global dividends hit Q1 record of $339.2bn UK large cap companies in the FTSE index have already announced plans for £38.5bn to be made available in share buybacks this year, with an additional £3bn in special dividends from HSBC. The FTSE 250 is also forecasting dividends of £10.8bn in addition to the £38.2bn worth of live or completed takeover offers, while the F...