According to a report by Capita Registrars Research, UK companies paid out £57 billion to investors last year - 15% less than in the previous year - resulting in a loss of £10 billion.
Furthermore, the research found that investors are unlikely to fare any better this year because of a weak economic recovery.
The report found that those with shares in the banking sector were worst affected with the industry slashing payouts by £6 billion on the previous year.
However, defensive firms increased dividend payments by at least 5% but High Street retailers, who were hit hard during the recession, cut what they paid to shareholders by 25%.
Meanwhile, drug companies paid 20% more in dividends, while electricity suppliers, food retailers and tobacco producers also increased dividends by at least 10%, according to the report.
Oil firms also raised dividend payments - by £3 billion on 2008 levels.
Paul Taylor of Capita Registrars comments: “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.”
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