A new research, prepared from the data specialists from the Exchange Data International, has shown 15 per cent decline in share dividend paid by British companies to the shareholders apparently due to tough economic conditions of the banks. The companies in the country paid around £10bn less in dividend in the year as compared to the previous year.

The ailing conditions of around 202 firms made them to cut the dividend size in line with their cost cutting and revenue generating policy. The situation is even more serious for other 74 firms who didn't pay even a penny of dividend as claimed by Capita Registrars Research.

However, it is due to comparative strong financial health of the drug, tobacco and oil companies that made significant contribution to save situation turning grimmer. The investors left with no choice to buy stocks from a few big stocks to secure their income.

Commenting over the tough financial conditions, Paul Taylor, the Head of dividends at Capita Registrars, added, "The recession has hit dividends particularly hard because companies have not only had to cope with falling profits, but also massive pressure on their ability to finance themselves. Preserving cash has been a top priority."