UK Dividend Monitor: Q1 sees slower headline growth on stronger pound

Payouts from oil majors and miners

UK dividends saw slower growth in Q1 with headline dividends, excluding one-off payments, growing by just 1.2% year-on-year, according to the UK Dividend Monitor.

The latest research, published by Link Asset Services (formerly Capita Asset Services), reveals that while headline payouts were up 7.6% to £16.7bn, this was primarily boosted by firms such as British American Tobacco, which moved to quarterly payouts following its acquisition of US tobacco firm Reynolds. Underlying dividends fell 0.1%, below the firm's forecasts, due to a growing exchange rate penalty from the weaker US dollar. Sterling was 12% stronger compared to Q1 2017, which pushed down the sterling value of those US dollar payouts by £879m. FTSE 100 dividend cover looking 'skin...