Capita cuts UK dividend forecast despite Vodafone payout boom
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.