Payouts give investors that special feeling again

Payouts give investors that special feeling again”

Asset Services said that special dividends rose to £1.5bn, driven by an extra £960m payout by Compass to its employees. Rio Tinto also paid a much larger dividend than the market expected, while higher copper production and a big increase in profits on silver mining boosted the respective payouts of Antofagasta and Fresnillo.

The latest Dividend Monitor from Capita Asset Services reported that United Kingdom companies paid out £28.5bn in the three months to the end of September, a record for a third quarter of the calendar year, leaving dividend pay-outs for the whole year "comfortably on track to smash the previous annual record set in 2014". Around 5% of this increase was attributable to the weaker currency - one-third of the total distributed in the second quarter was declared in U.S. dollars, with euros accounting for a small fraction more - adding £1.2bn to dividends in the second quarter.

Underlying dividends, which excluded specials, hit £27bn in the third quarter, which is also a third quarter record and is the second largest underlying payout for any quarter ever. After a period of high volatility, commodity prices began to rebound a year ago, driving mining profits higher.

The payout in the third quarter was up 14 percent compared to the same period past year.

Rolls Royce drove up the industrial goods and support services to £1.6bn after restoring its payout, while BT's payout pushed telecoms to a total of £3.5bn in dividends paid.

In the banking sector, Lloyds continued to provide most of the growth.

Stripping out the special divis, the third quarter pay-out level was 13.2% higher than the same level of 2016.

Capita is projecting £16.7bn of dividends in the fourth quarter, up by more than £3bn on its previous projection, which would take the full-year total to £94bn, up 11.1% from the previous year's £84.7bn and ahead of the current record year, which is 2014 when dividends totalled £88.1bn. "Generous payouts have been topped up by big exchange rate gains between January and June and very large special dividends, setting 2017 up to be a sparkling year". Therefore, in 2018 the dividend outlook is likely to become gloomier. Another concern is that the United Kingdom stock market is heavily concentrated, with the top 10 shares in the FTSE 100 paying around half of all dividends for the entire United Kingdom market.

Like this


23 October 2017
Former HSBC banker found guilty of fraud in the US
Mark Johnson, a British citizen, was arrested in dramatic fashion in NY last July as he was about to board a plane to London. While banks have admitted to conspiracy in currency trading, this suit was the first to target individuals.

23 October 2017
Horror error leads to epic 'Bradbury' marathon win
Eyob Faniel became the first Italian to win the race in 22 years, following the weird incident which saw six runners taking a wrong turn.

23 October 2017
New Analyst Ratings On Investors Real Estate Trust (NYSE:IRET)
Stifel Nicolaus assumed coverage on shares of Pennsylvania Real Estate Investment Trust in a research note on Friday, July 14th. It is widely believed that a stock's future performance can best be predicted by analyzing prior trends and patterns in price.

23 October 2017
The voice of Gujarat can not be suppressed or bought: Rahul Gandhi
Narendra Patel claimed he was given Rs 10 lakh as advance money for joining the BJP. He said GST had ruined India's economy and called it "Gabbar Singh Tax".

23 October 2017
Demand for Hawking PhD thesis crashes Cambridge's website
He was the Lucasian professor of mathematics at the university from 1979 to 2009, a post that was once held by Isaac Newton. At the time of writing the paper, Professor Hawking was just a 24-year-old postgraduate student in Cambridge.

23 October 2017
Duane Brown returns to the Texans
Brown is in the fifth year of a 6-year, $53.4 million that he signed back in 2012. "I'm in shape. However, per KHOU , none of his $9 million base salary is guaranteed for the final two seasons.

23 October 2017
Tracking the John Besh Sexual Harassment Allegations
Besh Steak, inside Harrah's New Orleans Casino, was the second oldest restaurant in chef John Besh's company, dating back to 2003. So far, 25 current and former employees of Besh restaurants have come forward as victims of sexual harassment while on the job.

23 October 2017
Homicide team on scene of South Surrey shooting
It also, apparently matches the description of a suspect vehicle from shots fired nearby in Langley early Sunday morning . In South Surrey, officers are conducting neighbourhood canvassing and speaking with witnesses today (Monday).

23 October 2017
Tillerson makes unannounced side trip to Afghanistan
The State Department says Tillerson visited Bagram Air Base for talks with Afghan President Ashraf Ghani and other senior officials to outline for them the Trump administration's new South Asia policy.

23 October 2017
Body of small boy washes ashore on Galveston beach
Police have been unable to trace his parents or any family members, and no one has come forward to report a missing child. The boy's body was found lying in the sand on Galveston Island around 5:30 p.m. on October 20, police say.