UK dividend growth is set to be weaker in the second half of 2017 as the benefits from exchange rate gains begin to disappear, according to the latest Capita Dividend Monitor.
The total headline dividend figure for the second quarter hit a record, rising 14.5% year-on-year to £33.3bn, the fastest gain in three years. Underlying dividends, which exclude special dividends, rose to £28.6bn, up 12.6%. However, exchange rate gains only added £1.2bn to the total headline figure, lower than £1.7bn in Q1. Capita said it had expected the exchange rate benefits from a weaker pound to diminish over time, but the latest figures suggest this is happening at a "slightly faster pace" than expected. The report said: "Exchange rate gains were slightly less than we had mo...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
