UK dividends surge again in Q3 but 'caution needed' for 2022

Link Group’s latest UK Dividend Monitor

clock • 4 min read

UK dividends soared beyond expectations yet again in Q3, recovering nearly 90% year-on-year, driven by an “unprecedented” boom in the mining sector as well as a rebound in the oil industry but commentators urge "caution" going forward.

Building on the momentum seen in Q2, almost all sectors saw an increase in dividends, while only five paid out more than 2019. Mining, oil and banking made the biggest contributions to growth,  according to Link Group's latest UK Dividend Monitor. Telecoms was the only industry that saw a decline. This was set against the "pandemic-struck" Q3 of 2020, during which payouts halved across the board. Still, dividends managed to recover to £34.9bn on a headline basis, compared to £35.7bn for the same period in 2019. "For some, business is roaring back in a much stronger way than expected w...

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