UK dividends rose 1.3% in Q4 2025 to \u00a314.3bn according to the Dividend Monitor report from global financial services company Computershare.<\/p>\n
Regular dividends, which exclude one-off special payments, rose to \u00a313.9bn in Q4, up 2.1% on a constant-currency basis.<\/p>\n
The report noted how Q4 ended positively thanks to better than anticipated payouts in the energy, consumer basics and property sectors.<\/p>\n
As well as a boost from companies promoted from the AIM to the main stock market, also a moderation in the impact of exchange rates.<\/p>\n
However, when you zoom out for the full year, headline payouts were down 0.9% to \u00a387.5bn.<\/p>\n
The report reveals share buybacks reached a provisional \u00a363.6bn for 2025, up from \u00a330.8bn in 2019.<\/p>\n
For 2026 the report projects total dividends of \u00a388.8bn, up 1.5% on a headline basis.<\/p>\n
Regular dividends of \u00a385.9bn are anticipated to rise 2% on a constant-currency basis, with UK equities yielding 3.3%.<\/p>\n
Banks, insurers and general financials increased regular dividends by \u00a31.2bn across the three sectors.<\/p>\n
Healthcare, utilities and basic consumer goods also made a notable positive contribution.<\/p>\n
Computershare CEO Issuer Services Mark Cleland said: \u201cDividend payouts have still not regained pre-pandemic highs, and the slow dividend growth we\u2019ve seen since 2020 largely continued last year.<\/p>\n
\u201cRates did improve as 2025 progressed \u2013 and might well have been higher although many companies used significant sums of capital to undertake share buyback programmes.<\/p>\n
\u201cThere are no clear indications that dividends will grow much faster in 2026, but a median dividend growth of 3.7% suggests a healthier market trend than the outlying figures suggest.\u201d<\/p>\n