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.