According to a new report, the total dividends paid by companies in the UK have touched a record high level and it is expected to touch a new high for the year in the next quarter.

Companies in the UK paid out a total of £25.3 billion in dividends between April and June, according to the share registrar Capita's Dividend Monitor. The report showed that out of the total firms surveyed, 198 commenced or reinstated dividends while only 33 reduced or cancelled dividends. The special dividends for the quarter were stronger than expected at £1.2 billion mainly due to copper miner Antofagasta, insurer Standard Life and ITV.

Sectors including media, financial services and food producers were key players in offering special dividends in the country during the quarter. On the other hand, Retailers recorded dividends fall 2 per cent due to a difficult market conditions and non-life insurers cut pay outs 20 per cent over the same quarter of the previous year but life insurers recorded a growth of 3 per cent.

Justin Cooper, chief executive of Capita Registrars, said this was "part of a wider picture that is seeing the pace of dividend growth slow down, following a profit squeeze on UK firms. Dividends are not falling, they are merely growing more slowly, but slow enough for us to further trim our underlying forecast for the year."