Severn Trent dividend exceeds £260m amid rising anger over sewage pollution

Investor payout comes as company posts small profit increase and forecasts strong earnings growth

Severn Trent has increased its dividend to more than £260m, despite growing public anger over payments made by water suppliers to their shareholders and executives, as companies come under increasing pressure to tackle leaks and sewage pollution of rivers and seas.

The rise in the water company’s investor payout came as it reported a small increase in profit for the past year and forecast strong earnings growth for the coming year.