UK firms set for dividend record

A BOUNCEBACK in the mining sector has boosted dividends from UK companies in a year expected to be a record for shareholder pay-outs.

Dividends from UK companies grew 6.1pc over the latest quarter, boosted by global commodities firm Glencore bringing back its dividend after a rocky few years.

Analysts at Janus Henderson said the underlying increase was better than expected, adding: ‘Rising prices for resources over the last year or so, alongside aggressive cost-cutting have helped improve cash generation and underpin balance sheets.’

It comes as Anglo-Australian miner BHP is set to hike its dividend when it announces results this week.

Global dividend pay-outs hit £347bn for the second quarter, rising 7.2pc on an underlying basis, with every region seeing an increase. This year is now set to be a record one, with Janus Henderson upgrading its forecast for pay-outs to £930bn.