UK Dividend Monitor: Headline dividends fall for first time in three years

Stronger underlying dividends

UK headline dividends have declined for the first time since 2015, falling 2.1% in the second quarter of 2018, according to the latest quarterly dividend monitor from Link Asset Services.

The report said year-on-year headline dividends fell to £32.6bn as a result of lower special dividends. Link said special dividends were £1.9bn during the quarter, which was deemed "healthy" but lower than the above-average special dividends of £3.2bn that were paid out in Q2 2017. However, the administration solutions provider said this was not a "cause for alarm" as underlying dividends - which exclude special dividends - saw a sharp rise of 7.1% to a record £30.7bn. The 'intruiging value case' for UK equities Particularly strong growth this year came from the mining sector wh...