Improved prospects for income investors

British investors are seeing stronger dividend payout growth from ex-FTSE 100 firms compared to the FTSE 100 itself, with Aim companies leading the way with a 45% increase. Despite perceptions of the FTSE 100 as more dependable, the top-10 payers account for the majority of dividends, while earnings cover for FTSE 100 dividends has improved to 2.07. Globally, dividend payouts hit a record high in the second quarter, with banks and tech firms like Meta and Alphabet increasingly focusing on dividends, signaling positive growth for income investors.

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