In the past five years private investors have earned dividend income of £37.9bn, despite a flat stock market, and should look forward to a further £8.55bn in 2012, according to latest research from Capita Registrars.
The findings illustrate just how important dividends have become in generating investor returns during tepid periods of growth.
Capita said private investors reaped £8.04bn in dividends in 2011, which was still shy of the £8.41bn they earned on investments in 2008.
Dividends will grow 10% in 2012, Capita forecasts, to a total of £75bn, with £8.55bn paid to private investors, representing a record level of income from shares and an increase of £510m on 2011.
Charles Cryer, chief executive of Capita Registrars, said: "Crucially, investors should not be too distracted by the short term ups and downs of the index. We forecast dividend growth of 10% this year to £75bn, putting an additional £510m in private shareholders’ pockets, a welcome boost to strained family finances.
"Dividends are by far the most important source of returns from owning shares over the long term. In the past five years the FTSE 100 has barely moved, bringing a small capital loss to investors, but they have earned £38bn in dividends over that period."
