Regular dividends from UK companies fell 0.4% in 2024, according to new analysis from Computershare.
Dividends are an important part of investing in stocks. While some equities are best added to a portfolio for their future share price growth potential (growth stocks), others are sources of income. Anyone considering buying new stocks needs to consider whether they are aiming for growth or income.
UK businesses paid out a total of £92.1 billion through the year, 2.3% more than in 2023, but this figure includes one-off payments. Total regular dividend payments fell to £86.5bn, marking a decline on the previous year.
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(Image credit: Computershare)
However, the decline was mainly driven by falling dividend payments from mining stocks. The mining sector had been the top dividend payer between 2021 and 2023, but mining dividends fell by $4.5 billion, or 40%, in 2024.