HSBC regains crown as top UK dividend payer for first time since GFC
Last year, banks overtook any other sector in terms of dividend payments, something that has not happened since before the Global Financial Crisis, Computershare noted.
Data from Computershare's Dividend Monitor published today (25 January) revealed 2023 marked the second consecutive year in which banks made the largest contribution to UK dividend growth, with payouts rising by almost a third to £13.8bn.
European dividend payouts forecast to rise by 6.5% in 2024
Last year, banks also overtook any other sector in terms of dividend payments, an event that has not occurred since before the Global Financial Crisis, Computershare noted.
However, overall UK dividends fell by 3.7% to £90.5bn over 2023, due to a decrease in one-off special dividends, although regular dividends grew by 5.4% to £88.5bn.
Mark Cleland, CEO issuer services UK, Channel Islands, Ireland and Africa at Computershare, said: «The return to prominence by the banks is really remarkable. 13 years of rock-bottom interest rates made it very hard for the sector to make profits, but the need to quell inflation with higher interest rates means the last two years have delivered a dramatic turnaround. Bank investors are reaping the dividends of this reversal and we expect them to see even larger payouts in 2024.»
The oil and utility sectors followed suit, with high energy prices driving a 15.8% increase in dividends from the oil sector, whereas inflation-linked dividend policies drove record dividends from utilities.
The biggest detraction came from the mining sector, the firm found, as commodity prices and profits weakened throughout the year.
Total dividends paid by the mining sector dropped to £4.5bn — down more than a quarter year-on-year — including special
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