FRC Lab Insight Report: Disclosure of dividends revisited
News types: Generic Announcement
Published: 29 June 2023
Dividends and distributions have long been a key consideration for investors. However, higher interest and inflation rates have introduced a wider set of factors to consider. Institutional investors increasingly reflect both on the trade-off between dividends and other considerations, such as support for customers and employees over cost-of-living pressures and the impact of inflation on the business model of companies over the medium term.
It is not only investors who are interested in the decision-making around dividends; it is also of interest to a wider set of stakeholders interested in the stability of a company and its future prospects. Whilst in the medium term, the government intends to introduce legislation for additional disclosure in this area (see below), there are aspects where more focused disclosure would already be useful to investors and other stakeholders.