FTSE 100 And the Return of Dividends

After breaking records towards the end of the year, the FTSE 100 is looking set to deliver some nice dividend payouts in 2018. Analysts expect to see dividend payouts across FTSE 100 listed companies to rise to £88.5 billion this year, an increase of 7 percent over the final forecasts for last year. If they are correct, then this means that 2018 would be the eighth consecutive year of dividend increases for the UK’s leading index, which paid out £46.1 billion in 2010, and has seen growth every year since then.

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shareprices.com - Tuesday, January 02, 2018

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Royal Bank of Scotland Group

The bulk of that growth has come from financial firms, with Royal Bank of Scotland being one that is looking good for 2018 - the company is set to resume payouts after having ceased them ten years ago. Meanwhile, Standard Chartered and Barclays are both expected to double the payouts they make to their shareholders.

Other sectors will also be boosting the overall yield of the FTSE 100, which is expected to see dividend yields increase from 4 percent last year, up to 4.3 percent in 2018 based on current share prices. Inflation has hit the consumer prices index hard, so this news will be welcome for many investors, in particular those that are on fixed incomes. Companies outside of the financial sector that are expected to offer good payouts over the course of the year include Glencore, Sky, British American Tobacco, Barratt Developments, Tesco and Imperial Brands. All of these have attractive yields based on current share prices.

 

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