AJ Bell: UK dividend growth to fall by 30 percentage points in 2022

Quarterly Dividend Dashboard

The FTSE 100’s total dividend pay-out for 2022 is expected to increase by £1.9bn or 2%, according to AJ Bell’s latest Dividend Dashboard report, compared to a projected 32% uptick – or £81.8bn pay-out – for 2021. However, the fall in growth could be the result of improving dividend cover.

According to the firm's research, the blue-chip index is expected to yield 4.1% over the course of next year, marking the second annual dividend increase since the sharp decline seen in 2020. Dividend growth will have slowed considerably, however, with a fall in industrial and precious metal prices contributing significantly to the slowdown. That being said, Glencore is expected to be the highest dividend-grower next year with a pay-out increase of £1.5bn, while Rio Tinto is expected to offer the highest dividend pay-out overall at £5.8bn. "A drop in industrial and precious metal pric...