Capita cuts UK dividend forecast despite Vodafone payout boom

Tim Wallace
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GROWTH in dividends is set to slow this year, Capital Asset Services said today.

The group expects underlying dividends to come in at £82.2bn, representing growth of 6.3 per cent on the year.

However, that is £800m less than the analysts had previously forecast, after the prediction was cut because of weak payouts in the last three months.

“UK dividends ended 2013 with a whimper. Sustaining the stellar dividend growth of 2011 and 2012 was always going to be difficult, but in the event 2013 has been a harder year for income investors than expected,” said Capita Asset Services’ Justin Cooper.

“Growth is still there, but it has been slowing sharply.”

However, some big payouts are still expected – Vodafone is preparing for a £16.6bn special dividend this year.