UK dividends outstrip inflation


UK dividends have risen four times faster than headline inflation, Fidelity International has claimed.

The latest analysis from the company has revealed, three quarters of Britain’s largest companies increased their dividends above the rate in 2007.

"To me, consistent growth in dividends is a robust indicator of a healthy company," said fund manager, Sam Morse.

Quoting statistics from DataStream he said: "Looking back over the past ten years there are 191 companies in the FTSE 350 which have consistently increased their dividend payouts."

The research found the median increase for FTSE 100 stocks from 2006 to 2007 was 9.6 per cent. The largest dividend payout was by travel operator Thomas Cook, which boosted its dividend year-on-year by more than 600 per cent.

The next largest payouts were from Standard Life (111.1 per cent), Sage (61.4 per cent) and commercial property company, British Land (57.9 per cent).

British Land has recently written off £1.4 billion from the value of its commercial property portfolio.

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