17 out of 21 sectors raised dividend payments in Q3
On a headline basis, total UK dividends in Q3 2024 fell to £25.6bn, an 8.1% decline, led by cuts in the mining sector (£2.6bn reduction in payouts)1. Stronger sterling, the impact of share buybacks and lower one-off special dividends also contributed to the reduction. Mining sector dividend declines masked better growth from most other sectors, with 17 out of 21 sectors raising payouts in the period and three quarters of companies increasing or maintaining their dividends. Excluding the mining sector, Q3 underlying growth came in at 2.6%, with pharmaceutical companies making the most positive contribution, followed by industrials. For 2024 as a whole, headline dividends are expected to come in at £92.3bn, a 2% uptick year-on-year.
Numbers withdrawing from their pension before seeking advice increasing
The latest retirement market data from the Financial Conduct Authority (FCA)2 has shown an increase in the number of people withdrawing from their pension before taking advice – a worrying trend. Of the 885,445 pensions accessed for the first time in 2023-24, 60% of people took no regulated advice or guidance before doing so. This is a risky approach, as unadvised pension withdrawals can result in some poor choices, leaving individuals exposed by drawing too much, taking too much risk, incurring tax charges, falling victim to scammers, and the list goes on. Accessing your pension for the first time? It’s important to carefully consider the long-term sustainability of your withdrawals and potential tax implications.
1Computershare UK Dividend Monitor, 2FCA, 2024
The value of investments can go down as well as up and you may not get back the full amount you invested. The past is not a guide to future performance and past performance may not necessarily be repeated. The Financial Conduct Authority (FCA) does not regulate Will writing, tax and trust advice and certain forms of estate planning.
