A new report has predicted that UK dividends will continue to fall over the course of 2016, after statistics revealed that dividends fell by five per cent in the first quarter of the year.
The study found that UK dividends have grown 44 per cent since the end of the recession, in comparison with a global average of 59 per cent.
Dividends in the UK fell five per cent to $16.4billion, representative of an underlying 0.7 per cent growth, in comparison with a 3.1 per cent underlying growth globally, the report said.
Payout cuts from the likes of Morissons, Barclays and Rolls-Royce have been forecast to take their toll on dividend growth in coming months, after the UK’s Q1 statistics were criticised for ‘lagging behind’ global growth.
Experts have said that although dividend income has relaxed in the short term, the UK remains an attractive investment market.
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