Dividend growth likely to slow this year – are UK income stocks still worth buying?

UK equities have long been popular with income investors. But as the economic outlook deteriorates, dividend growth is likely to slow. Can you still find good yields?

Elevated view of London's financial district at night.
(Image credit: John Lamb via Getty Images)

Shareholders have enjoyed decent dividend payments from UK equities so far in 2024. However, the earnings picture going forward is weakening against a backdrop of limp economic growth and higher interest rates

As a result, dividend growth is likely to slow over the course of the year, according to the latest data from Computershare’s quarterly dividend monitor

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CompanyProspective yield in 2024
Phoenix Group Holdings11.17%
Vodafone Group10.78%
British American Tobacco10.29%
M&G10.11%
HSBC Holdings9.40%
Katie Williams
Staff Writer

Katie has a background in investment writing and is interested in everything to do with personal finance, politics, and investing. She enjoys translating complex topics into easy-to-understand stories to help people make the most of their money.

Katie believes investing shouldn’t be complicated, and that demystifying it can help normal people improve their lives.

Before joining the MoneyWeek team, Katie worked as an investment writer at Invesco, a global asset management firm. She joined the company as a graduate in 2019. While there, she wrote about the global economy, bond markets, alternative investments and UK equities.

Katie loves writing and studied English at the University of Cambridge. Outside of work, she enjoys going to the theatre, reading novels, travelling and trying new restaurants with friends.