The big 13: UK stocks for dividend growth

With investors concerned about the propsects for payouts from UK stocks amid the worsening economic environment, Shore Capital has identified stocks from every sector in the market which should be able to grow their dividends.

The stockbroker, which is positive on the outlook for dividend growth in 2011 and 2012 despite the headwinds facing the UK, is expecting a number of stocks to increase payouts in 2011 after three lean years. Following a decline in dividends of 25% in 2008 and 14% in 2009, according to its own data, Shore Capital said dividends in the UK (including BP) only rose 4.4% in 2010. It expects payouts this year to far exceed last year's, rising by 15.9%, and notes 78% of companies increased dividends in the recent interim reporting season. Shore has identified 13 opportunities across the U...