Q2 2025

“In our last edition we forecast a good second quarter for underlying growth, and the outcome was even better than we expected owing to pockets of strength in a few sectors like finance and aerospace.”

Mark Cleland
By Mark Cleland, CEO of Governance Services and CEO of Issuer Services, UCIA

UK dividend fell 1.4% in Q2 – as lower one-offs and stronger pound hit headline total

Key highlights:

  • Check circle iconTotal dividends: UK dividends fell 1.4% to £35.1bn: one-off special dividends halved, and a stronger pound also hit the headline total
  • Check circle iconExchange rate: The strong pound against the dollar erased £934m from Q2 headline payouts
  • Check circle iconUnderlying growth: Regular dividends which strip out one-offs rose 6.8% to £33.1bn on a constant-currency basis
  • Check circle iconMedian growth: The typical (median) company dividend growth was more modest at 4.1%, with 22% of companies reducing payouts
  • Check circle iconTop sectors: Defence contractors and financials accounted for three quarters of Q2’s growth
  • Check circle iconHeadline forecast: Headline 2025 forecast trimmed by £1.8bn – mainly owing to lower projected one-offs and continuing sterling strength – down 1.4% year-on-year to £88.3bn
  • Check circle iconUnderlying forecast: Good first half means annual underlying growth upgraded to 2.8% (from 2.1%) on a constant-currency basis, bringing regular dividends of £85.1bn

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