Capita cuts UK divi forecast despite £25bn Q2 record

UK dividend payments hit a new record high in Q2, with PLCs paying out a total of £25.3bn to investors, but slowing profit growth means full-year dividends are expected to drop year-on-year.

The latest Dividend Monitor from Capita Registrars said underlying growth in payouts in the second quarter of 9.5% had driven total dividends to a record level, amid a flurry of special one-off payouts. However, Capita Registrars said the decline in payouts in Q1 – which saw a 25% drop in the value of dividends to £14.1bn – has left payouts poised to grow more slowly than last year. The group said it has reduced its forecast for underlying dividend growth in 2013 to 7.7%, with headline growth of just 1.1% to £81.4bn. Justin Cooper, chief executive of Capita Registrars, said second ...