Shareholders suffer as dividend payments fall in 2010

| July 23, 2010 | 0 Comments
Shareholders suffer as dividend payments fall in 2010

Research by Capita Registrars Dividend Monitor has revealed how shareholders will suffer this year due to a fall in dividend payments.

Dividend payouts by London-listed companies will fall 6.5% in 2010, the company said, primarily due to the suspension of oil giant BP’s dividend.

The research estimated British companies would pay £54.7 billion to shareholders this year, down from £58.5 billion in 2009.

BP, which is suffering due to a major oil spillage in the Gulf of Mexico, announced last month it was cancelling its dividend in order to pay for the disaster.

BP’s stock market value is vital for millions of pension savers, accounting for around £1 in every £7 of blue-chip dividend payouts each year.

Paul Taylor, head of dividends at Capita Registrars, comments: “2010 is going to be another tough year for some income investors due to one company cancelling their dividend.”

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