The value of UK dividends is expected to increase in 2026 after another disappointing year in which payouts failed to reach pre-Covid levels. According to a report from transfer agent Computershare, headline dividends will increase by 1.5% to £88 billion. However, the increase in share buybacks by listed UK companies, which have more than doubled in the last six years – from £30.8 billion in 2019 to £63.6 billion, has limited the surplus cash available to shareholders. “Rates did improve as 2025 progressed – and might well have been higher although many companies used significant sums of capital to undertake share buyback programmes,” said Cleland. “There are no clear indications that dividends will grow much faster in 2026, but a median dividend growth of 3.7% suggests a healthier market trend than the outlying figures suggest,” said Cleland.