In 2024, UK companies paid shareholders £92.1 billion, marking a 2.3% increase largely driven by special dividends. However, underlying dividends—excluding these one-offs—declined by 0.4%, attributed mainly to a £4.5 billion drop from mining firms, the largest dividend sector previously. Excluding mining, overall growth was 8.4%. 77% of companies maintained or raised their dividends amid a challenging housing market affecting housebuilders, particularly Persimmon and Bellway. The report forecasts stagnant dividend growth in 2025, with median per-share increases between 4% and 4.5% expected, despite some significant cuts on the horizon.
UK companies distributed £92.1bn to shareholders in 2024, marking a 2.3% increase. However, underlying dividends fell by 0.4% when excluding special dividends.
The decline in mining companies' payouts, down £4.5bn, significantly impacted overall dividends. Excluding this sector, headline growth was 8.4%.
While the mining sector struggled, banks, insurance, and food retailers showed strong contributions, with 77% of companies seeing dividends rise or remain stable.
The 2025 outlook indicates median dividend growth per share of 4-4.5%, though overall market totals may not reflect this due to anticipated cuts.
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