'Less rosy' dividend outlook for 2016 as pressures mount on commodity firms

UK dividend growth is set to slow in 2016, despite a record Q3 for payouts this year, as the commodity sector faces further cuts, according to the latest Capita Dividend Monitor.

In its quarterly update, Capita Asset Services said UK headline dividends rose 6.8% year on year to £27.2bn in the third quarter. At the underlying level (which strips out special dividends), payouts rose 5.9% to £25.8bn, while special dividends grew by 26% to £900m.  Capita said investors enjoyed a £600m windfall as many of the UK's largest companies declare dividends in US dollars. They benefitted from the pound being 8% lower than the greenback in the third quarter year on year.  Financials remained the top sector in the third quarter, with dividend growth of 44% to £4.7bn. This wa...