15th April 2019

"Brexit remains at the forefront of UK dividends as we move into 2019" - The Share Centre


Following the release of the Link Asset Services Dividend Monitor this morning revealing a first quarter records for UK dividends, please find commentary from The Share Centre below.

The Share Centre comments: “A first quarter record for UK dividends makes positive reading on the face of it, however the majority of this surge derives from special dividends rather than organic underlying growth, and the findings reveal weakness particularly in the telecoms and retail sectors. 

“Looking forward, Brexit remains at the forefront of UK dividends as we move into 2019. Sterling has been particularly sensitive to market noise and has had a large impact upon dividend returns for investors, especially among the multinational companies as a weaker Sterling means more value for multinationals that derive earnings from the US. Although Sterling has strengthened slightly in the first quarter as investors start to expect a softer Brexit, the exchange rate still remains way below its comparable level back in 2018 resulting in a 3.7% growth boost felt mostly by the oil and pharmaceutical companies who made up almost two fifths of Q1 pay-outs.”

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