UK dividends fell 3.3 per cent in the second quarter, year-on-year, the worst performance among G7 nations, as cuts by some major firms were felt.
The Henderson Global Dividend Index states that UK dividends fell behind other developed markets following cuts by the likes of Standard Chartered, Barclays and Morrisons.
Total dividends actually rose 7.7 per cent in the quarter, compared to last year, to $33.7bn, but this was due to special dividends from some firms, including GlaxoSmithKline and Intercontinental Hotels.
However, the reduced value of sterling will help to bolster a UK company with earnings from overseas.
Alex Crooke, head of global equity income at Henderson Global Investors, says: “For UK-based investors, of course, the much weaker pound means dividend income coming from abroad is suddenly worth a lot more.
“Looking globally for income has not only provided UK investors with the opportunity to invest from a larger selection of companies with faster growing dividends than the UK can muster at present, it has also protected them in the short-term from the impact of the Brexit vote.”