• Mon. Jun 17th, 2024

Weak Pound Could Push UK-listed Firms’ Dividend Payout To $115B This Year

ByBhavik Nair

Jul 27, 2022
Weak Pound Could Push UK-listed Firms' Dividend Payout To $115B This Year


Firms listed in the United Kingdom are likely to make dividend payments to the tune of $115 billion this year as sterling’s weakness is expected to push up the translated value of dollar-declared payouts, according to Reuters, which cited a report by analytics company Link Group.

The group anticipates a headline dividend growth of 2.4% year-on-year to £96.3 billion ($115.90 billion), which is the highest since 2019.

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Sterling Weakness: The pound has lost nearly 11% against the dollar since the beginning of the year, which boosted corporate pay-outs in the quarter. “Exchange rates… will add significant impetus in the second half if sterling is unable to recover its poise,” the report said.

About 40% of the total dividends paid in the second quarter were dollar-denominated, and this generated an exchange rate boost of £1.4 billion to their sterling value, Link Group said. This was double the level expected by the group in April based on the exchange rates at the time.

Second Quarter Dividends: Dividends paid-out by London-listed companies jumped almost 40% to £37 billion pounds, just falling short of the all-time record high of £38.5 billion pounds in the second quarter of 2019. Aviva Plc AVVIY, Rio Tinto Limited RIO and Anglo American Plc NGLOY were some of the biggest dividend payers this year.


Image and article originally from www.benzinga.com. Read the original article here.