Dividend growth returns to UK as companies start paying out

UK dividends are rising for the first time since March 2009 as Artemis' Adrian Frost said dividend growth is back on the table.

Capita Registrars reported that for every company that cut its dividend, there are three companies reinstating payouts. Third-quarter dividend payments are up 1.6% year on year. However, Capita noted the absence of a dividend from BP leaves “a deep scar in UK equity income”. Frost, manager of the £3.2bn Artemis Income fund, said: “Companies have spent the last 18 months donning their best suits to impress bankers and bondholders. “Albeit gradually, this is changing, and I expect to see more and more companies rewarding shareholders via better dividends and/or buybacks.” Frost po...