Mining boom propels UK dividends to three-year high

UK firms rewarded shareholders with a £19.1 billion payout in the first quarter. gold cradle design plansThe figure, produced by Capita Registrars, was up 27%, on the previous year’s £15.1 billion and the largest cash payout by UK listed firms since the second quarter of 2008. Overall first half dividends totaled £34.1 billion, 19% higher on the previous year.

Consequently Capita has increased its full year dividend forecast by £1.8 billion to £66 billion, £9.6 billion than 2010. This would make it the highest annual total since 2008. Dramatic dividend increases by the mining sector are the major reason for Capita’s optimism. Overall the sector increased its payouts almost four fold, from £491 million in Q2 last year to £1.85 billion this year. A £540 million special dividend from Antofagasta, the payment of the first Anglo American final dividend in four years (£360 million), and big increases from all the other companies all contributed to the growth. However, support came from across the board. Life insurance companies and British American Tobacco made a notably large contribution, increasing their dividends £431 million and £231 million respectively...