Investors welcome the return of dividends as payouts bounced back quickly between April and June
Investors will be pleased with the return of the dividend as payouts flare up again between April and June.
Savers who were denied most of their dividend income last year, when companies held on to cash during the pandemic, saw companies pay out £25.7 billion in the second quarter of 2021.
Welcome return: Savers denied most of their dividend income last year saw companies pay out £25.7bn in Q2 2021
This was 51.2 percent more than the same time last year, according to Link Group – more than expected.
Payouts were still about one-sixth lower than the pre-pandemic average, as some struggling companies still don’t want to let money out the door.
But Link now expects dividends to reach £79.5 billion this year – £2.5 billion more than forecast in April.
The largest payouts came from the mining, banking and oil sectors, with bank dividends expected to be a major contributor for the remainder of the year.