FTSE Small Cap set to compete with FTSE 100 on dividends in 2023

Octopus Barometer

UK investors seeking dividends may look away from the FTSE 100 as other indices offer competitive yields, a new report has found.

Octopus Investments' Dividend Barometer found that 2022 the FTSE Small Cap index dividend yield was ahead of the FTSE 250 ex IT and FTSE AIM, and was only slightly behind the large-cap FTSE 100. The report also forecast this same pattern to be repeated for 2023, with the FTSE Small Cap expected to hit 3.8% dividend yield, a close second to the forecasted 3.9% for the FTSE 100. Although its dividend yield lagged the bigger-capped spaces, the FTSE AIM was the only index where payouts are expected to recover to pre-Covid levels in 2023, this may be due to the unsustainably high levels of...