At the same time, 1,826 companies announced dividend increases, the highest for any year since 1983.

In 1992 and 1993, the number of companies announcing dividend increases rose 23 percent each year.

On the other hand, if fewer companies posted dividend increases, then it is a good time to buy.

For the entire year, there were 1,425 announcements of dividend increases, up from 1,326 in 2001.

The company also announced a 2-for-1 stock split and a dividend increase.

Half-time figures are expected to show a 4% rise to £123m and a dividend increase to 6.9p.

This was the second dividend increase in the last six months.

Investors should realize "there is no chance of a dividend increase for several years," he said.

The 1,263 dividend increases announced was the smallest total since 1971, and dropped 24 percent from 1989's level.

Shareholders get a total 5% dividend increase for the year to 6.55p.