Payouts surged more than 46 per cent on 2020 levels, bolstered by a record number of frothy one-off special dividends which boosted the headline total by a record £16.9bn, three times their normal level, according to the latest Dividend Monitor from financial IT firm
Underlying payouts also rose by 21.9 per cent to £77.2bn in 2021, driven by a strong boost in the second and third quarters of the year which took the total payouts to levels not seen since mid-2017.
Underlying growth slowed in the final three months of the year, but a blockbuster special dividend from Daily Mail owner DMGT took the headline total to £14.1bn, 26.1 per cent higher year-on-year than 2020.
"As the pandemic continues, it would be easy to take a knife to our expectations for dividends for the coming year. We are, however, cautiously optimistic that most sectors can deliver growth."
Stokes predicted that banks and oil companies would be the main "engines of progress in 2022" after mining companies fuelled the boom in payouts in 2021.
Mining investors enjoyed a bumper year with profits in the sector driving dividends to three times larger than the long term average.
Reinstated banking payouts also bolstered the overall rebound last year after they were curtailed in 2020 as the economy battled the worst of the pandemic. Banks cut nearly £8bn in payouts in
Airlines, leisure and travel, which have felt the worst impacts of the pandemic, cut payouts by four fifths for the second year running in 2021, while oil dividends were lower because reductions in 2020 took place later in the year.
The firm predicted that the departure of multi-national mining giant BHP would restore balance to the
Stokes said: "The dominance of big mining groups has overshadowed the income generating capacity of the broader market and left
The resurgence in
After a slump in dividend payments in 2020, companies in the European equity index MSCI Europe raised their payouts again last year by around a third, to a record €378bn (£316bn), according to
The firm said it was anticipating an eight per cent hike in European dividends in 2022, which will lead to record highs being hit.
Dr
(c) 2022 City A.M., source