A massive 20% of FTSE 100 firms report in dollars and so do 12% of FTSE 350 firms, including Shell, BP and HSBC. Since the dollar has increased in value relative to the pound over the last year, when investors earn dividends from their shares in dollars they'll be receiving more cash when they come to exchange their pay-outs into sterling.

During 2014 a huge 36% of all dividends paid out by UK companies were in dollars, despite only 20% of FTSE 100 companies reporting in dollars.

Clearly small income-focused investors in the UK have something to smile about as a result of a strong dollar. Many FTSE 100 companies report in the dollar because they are large international companies.

This information is something to be positive about following the woes in the oil and gas sector, particularly relating to BP and Shell who may still cut dividend pay-outs this year as Tullow Oil has already done so.

Tom Cowley
Tom Cowley

Tom brings a wealth of experience to The Financial Management Centre having started his working career as an accounts trainee working his way up to site number one over 20 years ago. He has extensive experience of working in the UK and overseas for a number of prominent groups including Unilever, Shell, Costain, Smit International, Arcelor Mittal and Columbus McKinnon.