For long-term investors , history has time-and-time again shown them why focusing on a single asset or region in a period of volatility might not be the best approach
a single asset or region in a period of volatility might not be the best approach . The UK , for instance – a market synonymous with dividends – was particularly hard hit by the pandemic . The market consists of services and old economy businesses that were severely impacted by lockdown restrictions . The regulator ’ s decision to stop banks from paying dividends was also a major headwind . However , 2021 was a markedly different picture as UK dividends rose by 46.1 % to a headline of £ 94.1bn as sectors hard hit by lockdown restrictions rebounded strongly . 1 The resumption of banking dividends to the punchbowl was also a strong tailwind . With 2022 well underway , dividends have continued to grow at a strong clip . However , when we look underneath the surface , all is not as it seems . In 2021 , UK dividends were largely driven by mining payouts , which were 3x larger than the normal average and
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