UK dividend outlook 'healthy but unexciting' despite cuts to growth forecast

Projection for regular dividends down 0.5%

UK dividends are progressing at a “healthy but unexciting” pace, with most sectors exhibiting “steady” single-digit growth, Computershare's Dividend Monitor has found.

Dividend growth came in ahead of expectations in the first quarter of this year, with payouts rising 4.9% overall on a headline basis, up to £15.6bn. These were boosted by more one-off payments than expected, Computershare found. Overall, 95% of the first quarter's payers increased dividends or held them steady in the period, as regular dividends, which exclude one-off specials, rose 2% in line with expectations. On an annual basis, Computershare increased its expectations for headline dividend growth for 2024 to 4.3% from 3.7%, but revised down its forecast for regular dividends by 0...