UK dividend payments soared 89% in the third quarter of 2021, putting them on track to recover from the missed payments from coronavirus far earlier than expected.
According to the latest dividend monitor from Link Group, the amount paid out jumped to GBP34.9bn with special dividends and huge distributions from the big miners bumping up the total.
“Mining dividends, which quadrupled year-on-year to GBP12.8bn, meant the sector’s Q3 payouts outgunned the next five biggest sectors combined,” said Link.
“For the full year, miners will be responsible for nearly GBP1 in every GBP4 distributed by UK-listed companies.
“A very sharp rebound in oil prices is also enabling oil payouts to recover more quickly than expected. Banking dividends made a very large contribution to growth in Q3 too. “
Even without specials, dividends rose by 53% to GBP27.7bn, helped not only by the miners but also banks and oil companies.
As a result, Link has pencilled a big upgrade to its original target for the whole of 2021, which is now GBP93.2bn or a 45% jump compared to 2020.
Underlying dividends are set to rise 22.4% to GBP77.4bn and while this is still around 25% below the record year in 2019, Link expects further growth in 2022 boosted by the banks,