UK companies distributed dividends totaling £35.1bn in the second quarter of 2025, marking a 1.4% decline compared to the previous year. This decrease was largely due to a reduction in special dividends to £2.0bn and the adverse impact of a weakening dollar, affecting the sterling value of dollar-denominated payments by £934m. However, regular dividends actually increased by 6.8% on a constant-currency basis, exceeding forecasts. Key contributors to growth included Rolls-Royce and the banking sector, highlighting sector-specific strengths amid overall caution in dividend payments.
UK companies distributed dividends of £35.1bn in Q2 2025, down 1.4% year-on-year. This decline is attributed to halving of special dividends to £2.0bn and the weakening dollar.
Despite the headline decline, regular dividends grew by 6.8% on a constant-currency basis, surpassing projections by £230m, indicating underlying strength in certain sectors.
Rolls-Royce made its first dividend payment post-pandemic, contributing significantly to growth with a £508m payout, reflecting improved margins across its business sectors.
The UK's banks and insurers played a major role in boosting Q2 dividend growth, with bank payouts rising by 8.1%, showcasing financial sector resilience.
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