UK dividends fell sharply in Q3 as mining cuts masked solid growth from the wider market

  • UK dividends fell 8.3% on a headline basis in Q3 owing to mining payouts falling by a quarter and sharply lower special dividends​
  • Underlying growth was 2.4%; excluding mining, it was an encouraging 7.2%​
  • Utilities made the biggest positive contribution mainly owing to inflation-linked dividend policies​
  • Banks, oil and media companies also showed strong growth​
  • Underlying growth from the top 100 pulled ahead of the mid-250 – key growth drivers are currently concentrated among large caps
  • Yield on equities is steady at 4.0% but fell further behind rising interest rates on savings​
  • Strong Q4 is expected, but weaker Q3 leads to reduction in annual forecast

“Falling mining dividends are masking encouraging dividend growth from the wider market. We expect a strong Q4 ahead, but there is more uncertainty for 2024 as high interest rates cool the economy in the UK and around the world.”

Mark Cleland

Mark Cleland
CEO Issuer Services, UCIA

Complete the form below to download the report:

View our Privacy Policy for details on use and storage of your data
You have the ability to unsubscribe from future mailings at any time