dividends

BP has recorded a $17bn (£11bn) loss over the second quarter, one of the largest corporate losses in British history.

UK equity income managers say companies are beginning to pay dividends again, despite research forecasting a decline in UK dividends of 6.5% this year.

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Tineke Frikkee grew the dividend on the Newton Higher Income fund by 3.5% in the 12 months to 30 June despite prominent banks, and oil and gas firms slashing their dividends.

BP has spent $2.35bn (£1.5bn) so far cleaning up the oil slick in the Gulf of Mexico, and has paid out $126m in compensation.

BP will not pay dividends for the remainder of the year after being forced to put $20bn (£13.5bn) into a compensation fund for victims of the Gulf of Mexico oil spill.

Liontrust has decided to cut its dividend payment after seeing before tax profit slump from £14.3m to £796,000 over the year to end March.

The UK's leading income managers say investors should remain confident about dividend growth in 2010 and beyond, despite growing fears last week income giant BP, as well as many European players, may be forced to cut or pass payouts.

Warren Buffett has hinted his Berkshire Hathaway conglomerate will pay a dividend in the future.