London-listed companies have paid out a record £16.6bn in dividends to investors in the final quarter of 2016, largely thanks to a fall in the value of Sterling.
Total dividends paid out in the whole of 2016 were £84.7bn, up by 6.6% on the previous year.
Capita Asset Services, who provided the figures, put £4.8bn of the £5.2bn headline increase in dividends down to Sterling weakness, with overseas revenues boosted by a falling pound.
Investors often overlook the importance of dividends which can make up a significant part of overall returns.
When consistently reinvested, dividend payments help with long-term investment growth.
It said that of the £5.2bn headline increase in dividends during 2016, £4.8bn of this was due to sterling’s fall.