Dividend growth hits three-year low in Q2 as large caps falter

Dividend payments dropped from £30.7bn in the first quarter of 2014 to £25.8bn in Q2, according to the quarterly Capita UK Dividend Monitor, driven by slowing earnings and a stronger pound. That amounted to dividend growth of just 1.2% on the quarter. Furthermore, the top 15 dividend-paying firms saw their dividends fall by 0.8% year on year, with eight companies seeing payouts decline. Seven out of the top 15 dividend-paying companies declare their earnings in US dollars and were therefore hit by the pound touching five-year highs against the dollar over the period. The top-five b...