UK investors banked record dividend payouts in the second quarter of 2015 thanks to an uptick in the financial sector and a stronger pound.
According to registrar Capita, headline dividends totalled £29.2bn the highest second quarter pay-out on record, and an annual increase of 13.2%.
Banks buoyed the figures by hiking their dividends by a third, with Lloyds (LON:LLOY) paying its first since before the financial crisis.
It paid £595mln while investors in fellow banking giant HSBC (LON:HSBA) saw their dividend increase by 21%.
“To say income investors had a bumper three months is an understatement, with payouts at a record high for a second quarter.,” Justin Cooper, chief executive of Shareholder solutions, part of Capita Asset Services said.
“Better yet, the lion’s share of growth is coming through regular dividends, rather than one-off specials, as the UK’s largest companies benefit from improved currency conditions, while mid-caps continue to tap into strong domestic economic growth.”
Payouts excluding special dividends hit £28.3bn, an increase of 12.7% year on year, the highest for any quarter on record.
Special dividends were 31% higher year on year, standing at £900mln.
Currency effects continue to buoy payments, as the lower pound contributed £800mln in the second quarter.
Capita now dividends will reach £84.8bn in 2015, a 7.2%increase from last year.
It’s not all good news, however, as changes announced by George Osborne, Greek concerns and a struggling supermarket sector could weigh on companies, Cooper said.