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Shareholders enjoy increased dividend payouts as UK companies return £15bn to investors in first quarter of 2011 UK companies returned £15bn to shareholders during the first quarter of 2011, putting investors on track to receive the highest level of dividend income since 2008, research suggested on Monday. Dividend payouts during the three months to the end of March were 10.3%, or £1.4bn, higher than during the same period of 2010, the fastest quarterly growth rate since the third quarter of 2008, according to Capita Registers. The group, which analysed data on UK dividends from Exchange Data International, estimates shareholders will receive a total of £64.2bn in dividend payments during the whole of 2011, 13.6% more than during the previous 12 months and the highest level since 2008. A total of 156 companies paid a dividend during the first quarter, 126 of which increased the amount they paid, or reinstated their dividend, while 10 held it level. Only 40 companies reduced the amount they paid or cancelled the dividend completely. The figures contrast with those for 2009, when the majority of companies reduced the amount of cash they returned to shareholders. Charles Cryer, chief executive of Capita Registrars, said: “2011 has got off to a very strong start, and underlying dividend growth will accelerate from here. Income investors are set to enjoy the best year since 2008, with an extra £7.7bn flowing from UK companies into their pockets. “Even though there are still uncertainties in the wider economy, the dividend recovery is very broadly based indicating companies are much more confident in their financial position.” The group said figures for the first quarter were boosted by International Power, which paid a large special dividend of 92p per share, accounting for more than a 10th of the total. BP paid the seventh largest dividend during the period, following its decision to reinstate payments to shareholders, although at a total of £900m, it was half the level seen before the Gulf of Mexico disaster. Underlying dividends rose swiftly among FTSE 250 companies, with payouts increasing by 25% after one-off factors were stripped out. But payments made by FTSE 100 companies actually shrunk slightly, once the International Power dividend was excluded, due to the lower payout made by BP. Financial sector Investing Stock markets Financial crisis BP guardian.co.uk