AJ Bell: FTSE 100 dividends to top £81bn in 2022

Salford-based investment platform AJ Bell said the FTSE 100’s total dividend pay-out is expected to reach £81.2 billion in 2022, compared to £78.5 billion in 2021, equating to a yield of 3.9%.

“Ninety-seven FTSE 100 firms are expected to pay a dividend in 2022, against 91 in 2021 and 85 in 2020, as corporate confidence continues to return after the pandemic,” said AJ Bell.

“The combination of £81.2 billion in forecast dividends and the already-announced £32.7 billion in buybacks means that 2022 could be the second best-year ever for cash returns from the FTSE 100 – and there are still nine months left for more buybacks and special dividends (of which there were £5.8 billion in 2021).

“The current £114 billion expected total has been exceeded just once, by 2018’s £127.5 billion (when ordinary dividends came to £85.2 billion, special dividends £7.4 billion and buybacks £34.9 billion) …

“Analysts currently believe that 2022’s stated (FTSE 100) net profits of £169.7 billion will exceed not only the pre-pandemic peaks of 2017 but the high of 2013 as well, when Vodafone’s sale of its stake in an American joint venture with Verizon added considerably to the total.”

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Mark McSherry
Dalriada Media LLC sites are edited by veteran news journalist Mark McSherry, a former staff editor and reporter with Reuters, Bloomberg and major newspapers including the South China Morning Post, London's Sunday Times and The Scotsman. McSherry's journalism has also appeared in The Washington Post, The Guardian, The Independent, The New York Times, London's Evening Standard and Forbes. McSherry is also a professor of journalism and communication arts in universities and colleges in New York City. Scottish-born McSherry has an MBA from the University of Edinburgh and a Certificate in Global Affairs from New York University.