UK dividends jump 10%

UK dividends saw their biggest rise since the Lehman crisis after payouts climbed 10% in Q1, Capita Registrars research has found.

The rise to £15bn, 10.3% higher than the first quarter of 2010, was boosted by a special payout from International Power and BP's resumption of quarterly payments, the Financial Times reports.

International Power's special payout totalled 92p a share - or £1.5bn - following its takeover by GDF Suez in February. BP's return to the dividend list also contributed, although its payout was £1bn less than last year.

Capita Registrars has now raised its dividend forecast for 2011 to £64.2bn,  an 8% increase on 2010's total £56.5bn.

"Income investors are set to enjoy the best year since 2008, with an extra £7.7bn flowing from UK companies into their pockets," says Charles Cryer, chief executive of Capita Registrars.

The FTSE 250 experienced healthier payouts than the FTSE 100, the research found, due to companies feeling more confident about obtaining finance.

A listing of global commodity trader Glencore is also expected to boost UK dividends by £1.5bn per year and diversify payouts to investors.