Weakening sterling set to provide £5.7bn boost to UK dividends in 2022

£31.4bn dividends in Q3

Valeria Martinez
clock • 1 min read

The weakness in the pound is expected to boost UK dividends this year by £5.7bn, despite a decline in one-off large special payouts, the latest Dividend Monitor from Link Group revealed.

In the third quarter of 2022, dividends increased to £31.4bn on an adjusted basis, with the weak currency contributing a £1.9bn boost. Payouts in the third quarter were a little less than anticipated due to a decline in mining dividends, even with the exchange rate uplift. "The exceptional weakness of the pound [has] enormously flattered the figures. As the dollar has soared in value, the translated value of dollar dividends has received a boost," said Ian Stokes, managing director at Link Group.  "On current trends, the boost in the fourth quarter is likely to be even larger and will...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

Trustpilot