UK-listed companies could make $115 billion in dividend payments this year
Sterling weakness expected to boost the translated value of dollar-declared payouts, according to analytics company Link Group report
The highest since 2019 after a whopping second quarter for UK dividends supported by a surge in payouts in the oil, mining and bank sectors
Corporate payouts were bolstered in the quarter by FX gains as sterling has weakened 11% against the U.S. dollar this year.
Two-fifths of the total dividends paid in the second quarter were denominated in dollars, generating an exchange rate boost of 1.4 billion pounds to their sterling value, Link Group said
The second quarter saw dividends by London-listed companies jumping almost 40% to 37 billion pounds, just shy of the all-time record of 38.5 billion pounds
Some of the biggest dividend payers this year included insurer Aviva, the world’s biggest iron ore producer Rio Tinto and miner Anglo American.
For the second half of the year, Link Group has slightly reduced its core forecast to reflect the probability that mining dividends have peaked, it said.