FTSE 100 is forecast to yield 4.7% in 2020.
The forecast dividend payout of £91.1billion would be a new record, although this represents growth of just 1.8% compared to 2019.
- The biggest contributors to dividend growth looks set to be BAT and RBS.
- The biggest detractors to dividend growth look set to be Rio Tinto and BT.
- Dividend cover remains stubbornly static at just 1.69, below the ideal level of 2.
- Imperial Brands, Taylor Wimpey and Evraz look set to offer the highest yields next year – all in excess of 10%.
Russ Mould, investment director at AJ Bell, comments: “The FTSE 100 is currently expected to yield 4.7% for 2020, helped by forecasts for a record-high distribution to shareholders of £91.1 billion. However, this represents growth of just 1.8% from 2019’s expected pay-out of £89.5 billion. If correct, that would be the lowest rate of advance since 2009 and 2010, when the aggregate pay-out came in broadly flat.”