Investec's Hutchins: A look beneath 'murky' UK dividend trends

The casual observer of recent dividend trends in the UK may be forgiven for believing the income outlook has improved dramatically.

However, a look beneath the surface presents a murkier picture. Sterling's depreciation against the dollar since last year's Brexit vote and the US election has flattered UK plc's sterling dividend growth, with around 40% of UK companies' dividends paid in US dollars or euros, and nearly three quarters of the FTSE All Share's revenues generated overseas. Investec's Hutchins adds first small-cap stock post Brexit Accounting for other factors that skew the results, such as special dividends and distortions created by single large index constituents, dividend growth has been at best a...