Link Group have released a 1st-Quarter 2022 update for their Dividend Monitor publication.
Overview -
• Dividends have begun 2022 strongly, although the headline decline of 24.9% doesn’t reflect the true picture
• Underlying growth, which excludes special dividends, was 12.2% after adjusting for BHP’s migration to Australia
• The headline total was £14.2bn, with underlying (i.e., ex special dividends) at £13.3bn
• One-off special dividends were much lower in Q1 2022 than Q1 2021
Sectors & Companies -
• Oil companies drove growth in the first quarter, raising payouts 29%, though their total distributed this year will remain well below pre-pandemic levels
• Healthcare payouts rose thanks to a long-awaited increase from an enlarged AstraZeneca
• Special dividends from general retailers in Q1 bode well for the restoration, at least partially, of their regular payouts, while BT’s restored dividend boosted telecoms
• All sectors saw higher payouts once calendar effects and other one-offs were taken into account
Top 100 v Mid 250 -
• Mid-cap dividends continued to benefit from favourable base effects as part of their post-Covid-19 recovery – payouts rose 30.5% on an underlying basis, though lower special dividends suppressed the headline increase
• Top 100 payouts rose 12.8% after adjusting for one-off special dividends and the departure of BHP
Yield -
• UK plc will yield 3.7% over the next 12 months
• Mid-cap yield has risen over the last three months owing to weak share prices
• Yields on other asset classes are now rising too – the 10-year gilt has risen to 1.7%, while cash savings are now up at 0.9%
Outlook -
• UK plc dividend forecast upgraded by £4.5bn for 2022, adding five percentage points to our January estimate
• The Russian attack on Ukraine has boosted commodity and oil prices – these two sectors account for close to 90% of our upgrade
• We are also upgrading our expectations for banking payouts
• We now expect headline dividends of £92.2bn, down 0.8% year-on-year
• Underlying payouts (i.e., ex special dividends) of £85.8bn will be 11.1% higher than 2021, though adjusting for BHP’s migration the true underlying growth rate this year will be a very encouraging 15.2%
There's lots of additional detailed information and insight within the Q1 2022 Dividend Monitor update, specifically related to UK-company dividends, which can be downloaded by using the following link -
https://linkgroupmarketing.co.uk/p/4FG4-M0N/q1-2022-uk-dividend-monitor
It's worth noting that the PDF can be downloaded using any requested details on the above link...
Cheers,
Itsallaguess
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UK Dividend Monitor - Q1 2022
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