UK dividends rose 11.2% on a headline basis in Q2 to a record £36.7bn
- UK dividends rose 11.2% on a headline basis in Q2 to a record £36.7bn – ahead of forecast owing to larger one-off payments
- Underlying growth was just 1.0% thanks to a big cut in mining payouts
- Excluding the weak mining sector, underlying growth was a brisk 8.6%
- Growth was broad based – 16 out of 21 sectors saw higher payouts and the median dividend increase at company level was 5.4% year-on-year
- Banks made the strongest contribution to growth and are on track for record payouts in 2024
- Healthcare payouts jumped 25%, boosted by Haleon
- Housebuilders were a notable weak point – dividends fell 37%
- Large special dividends meant the top 100 and the mid 250 saw strong headline growth of 10.2% and 12.3% respectively in the second quarter
- Headline 2024 forecast cut to £93.9bn (from £94.5bn), up 3.8% (from 4.5%)
“Higher profits mean most sectors are paying more in dividends and spending a lot of cash on share buybacks, but fortunes diverge widely between companies and sectors, and international factors are at play and all this impacts the dividend picture too.”
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Mark Cleland
CEO of Governance Services & CEO of Issuer Services UCIA