British investors have received £1trn in dividends since 2000, according to the quarterly Dividend Monitor from Capita Asset Services. In 2000, a total of £42bn was paid out. By 2015, the annual total had jumped by 89% to £79.4bn, compared with GDP growth of 73%.
Inflation rose by 37% over the same timeframe, so income investors are well ahead in real terms. Capita expects the £2trn mark to be eclipsed in another decade.
The news is a reminder of the crucial contribution income makes to overall returns. As Capita’s Justin Cooper notes, the FTSE All-Share is just 14% up on its 2000 level, but with reinvested dividends, its return jumps to over 90%. 0%.