UK dividends surge back to ‘heady days of 2007’
Dividends paid out by U.K. companies in the second quarter of 2013 hit a record £25.3 billion ($38.66 billion), according to new research.
Dividends rose 7.6 percent in the quarter, compared to a year-ago, when dividends paid totaled £23.5 billion, according to a new report released on Monday by Capita Registrars.
"That takes us back really to the heady days of 2007," Justin Cooper, CEO of Capita Registrars told CNBC Monday.
Media, financial services, food producers and tobacco were among the best performing sectors in terms of dividends, the report said, with pharmaceuticals putting in the worst performance.
While the bumper figure for the second quarter may have surprised estimates, Capita says that for the first half overall, dividends totaled £39.5 billion, a decline of 7.3 percent compared to the same period in 2012 because of weak dividends in the first quarter of this year.
"The pace of dividend growth is slowing down...That's probably given by the fact there is a profit squeeze on U.K. companies. But to be clear the goods news here is dividends themselves are not falling it's actually the pace of growth that is actually slowing down," Cooper said.
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