Facebook flotation values the company at $104 billion
18 May 2012
Mon, 23 Jan 2012
By Rachel Wait
Investors last year received a record £67.8 billion in dividend payouts, with 2012 set to offer even higher handouts to shareholders, according to data from Capita Registrars.
For the full year, total gross dividends rose 19.4% and increased 26% in the fourth quarter alone compared to the same period in 2010. This made it the first annual increase since 2008 when the financial crisis began, with the number of companies starting or boosting their dividend payments outnumbering those who cut them by four to one.
However, while this is good news, Capita points out that this was helped by some distorting factors. For example, BP resumed shareholder payouts, handing out £1.8 billion more in 2011 than in 2010. It had previously suspended payments due to the Gulf of Mexico oil spill.
Figures also show that special dividends reached £2.9 billion last year, a rise of £2.2 billion compared to 2010. A total of 19 companies paid out special dividends compared to 13 in 2010 and just nine in 2009.
"Record dividends are providing a real bright spot for investors against a very gloomy backdrop of crisis in the eurozone and a stalling economic recovery in the UK," says Charles Cryer, chief executive of Capita Registrars.
"We are optimistic dividends will make further progress in 2012, unless the eurozone sinks deeper towards collapse and leads companies to retrench at home."
Capita Registrars is forecasting a further 11% increase in dividend payouts to £75 billion this year and special dividends are expected to again play a large part in this. Vodafone is due to pay out £2 billion at the start of February due to income received from its holding in Verizon Wireless.
