Dividends set to rise 7 this year

Ordinary dividends from FTSE 100 and FTSE 250 companies are forecast to rise 7% on an aggregate basis to £79.3bn this financial year, according to a new report from Markit.

Dividends set to rise 7 this year


The total expected payout including special dividends is set to move in the opposite direction however down 10% to £86.3bn.

This is largely due to the effect on the total of Vodafone’s large special dividend stemming from the Verizon stake sale the previous year.

The ‘Markit Dividend Outlook’ says the sectors projected to contribute most to the totals are oil and gas at £14.2bn, healthcare at £10.7bn and banking with £10.7bn.

In terms of which companies are expected to increase their dividends the most, big pharma and banks are in the frame, Markit said.

The forecast top five payers are set to be HSBC, Royal Dutch Shell A, BP, GlaxoSmithKline and Royal Dutch Shell B.

The biggest areas of downside risk around dividends for investors are projected to be oil majors and big miners due to lower prices and revenues in those sectors.