Cheering news as dividend payouts see increase

INVESTORS were boosted by a 27 per cent increase in dividend payouts by UK companies in the three months to the end of June.

The 19.1 billion paid out was the biggest by UK firms since mid-2008, according to Capita Registrars, which added that 4.1bn more was paid in the second quarter of 2011 than the same period last year.

Charles Cryer, chief executive of Capita Registrars, said: "Dividends are finally flowing freely again. Miners have taken the spotlight as they continue to make bumper profits from booming commodity prices, but growth is coming from almost all corners of the market.

"Equity yields are very attractive to investors wanting income and some protection from inflation."