AUS
NZ
UK
CA
USA
FRA
GER
ESP
ITA
NLD
PRT
SWE
GRC
IND
POL
BRA
ZAF
RUS
CHN
UAE
Highlights
- 2024 Stability: FTSE 100 dividends are expected to grow 1% to £78.6 billion, up from earlier forecasts of a decline.
- 2025 Rebound: Dividends are forecast to rise 7% to £83.9 billion, signaling a recovery in the FTSE 100.
- Cash Returns: The FTSE 350’s total cash return for 2024, including dividends, buybacks, and takeovers, is projected to reach £189.7 billion, offering a competitive yield of 7.7%.
2024 Dividend Projections
Dividends from FTSE 100 companies are projected to reach £78.6 billion in 2024, representing a 1% increase compared to the previous year. This comes after an earlier prediction in April had estimated a potential 11.5% decline. The adjusted figures reflect a more stable outlook for dividends, as companies in the index are expected to maintain their payout levels. The forward dividend yield for the FTSE 100 is projected to be 3.7% for the year, offering steady returns for income-seeking investors.
2025 Growth Outlook
Looking ahead, 2025 is expected to see stronger dividend growth. FTSE 100 dividends are forecast to rise to £83.9 billion, a 7% increase over the current year’s total. This suggests a positive outlook for the UK's largest companies, indicating a recovery from recent economic challenges. The forward dividend yield for 2025 is anticipated to rise to 4.0%, further enhancing the attractiveness of UK stocks for dividend-focused portfolios.
FTSE 350 Cash Returns
When adding share buybacks and completed takeover offers, the total cash return for the FTSE 350 is projected to reach £189.7 billion in 2024. This figure includes £49.9 billion in buybacks and £11 billion in dividends from FTSE 250 companies. The total cash yield of 7.7% compares favorably with current interest rates, government bond yields, and inflation, positioning UK equities as a compelling option for cash returns in the coming years.
