Cheers for capitalism

Dividends paid to UK investors have surged by more than a quarter in the past three months after big payouts from mining, life insurance and tobacco firms. Shareholders picked up £19.1 billion in the quarter to June, a 27% increase on the same period last year, said registrar Capita.

Miners were responsible for a large chunk of the £4.1 billion increase as they more than quadrupled their payouts. Chilean copper miner Antofagasta paid a special dividend of £540 million, South African giant Anglo American paid its first final for four years while other mining majors also announced big rises. Over the first half, dividends rose by 19% to £34.1 billion with underlying growth a "healthy" 10.2% after stripping out the impact of BP returning to the list, said Capita.

Charles Cryer, Capita Registrars' chief executive, said: "Shareholders have reason to cheer. Dividends are finally flowing freely again. Miners have taken the spotlight as they continue to make bumper profits from booming commodity prices, but growth is coming from almost all corners of the market."