UK plc to boost divis in 2011

31st Jan 2011 15:35

The widely expected announcement of a resumption of quarterly dividend payments by BP when the oil giant publishes its fourth quarter results on Tuesday should kick-start a year of increased dividend payments by UK plc.Capita Registrars is predicting that dividend payments by UK listed companies will rise by 11.5% this year to an aggregate total of £63bn. That would reverse a downward trend seen in 2010 when dividend payments fell by £2bn to £56.5bn, with the decision by BP to suspend dividend payments in June responsible for all of that shortfall and more. Had the oil giant merely maintained its first quarter dividend for the remaining three quarters of 2010, it would have paid out an additional £5.4bn in dividends.The market is expecting BP to restore the dividend at 7 cents per share, half the level it was at before the dividend was suspended.