UK dividend growth strong in Q2 despite sterling slump

UK dividend growth rose 6.1% in underlying terms

The fall in sterling masked robust growth in underlying dividends in the UK in Q2, according to the latest Janus Henderson Global Dividend index, with a rally in miners leading to a "better than expected" rise of 6.1% when FX effects were removed.

Looking at data to 30 June, the index - which analyses the dividends paid by the largest 1,200 companies globally by market cap - highlighted a 3.5% dip in headline dividend growth in the UK to $32.5bn.  This is largely due to the 15% fall in sterling after the UK voted to leave the European Union last year. This made the UK the only region in the world where dividends declined in US dollar terms.  But when the weak pound, special dividends and the loss of some companies from the index was taken into account, UK dividends rose 6.1% in underlying terms, largely driven by a "signific...