🚀 AI-picked stocks soar in May. PRFT is +55%—in just 16 days! Don’t miss June’s top picks.Unlock full list

Global dividends swell to record levels, with more growth to come

Published 2024-03-13, 04:44 a/m
© Reuters.  Global dividends swell to record levels, with more growth to come

Proactive Investors - Global dividends swelled 5% to new record levels last year and are expected to continue growing in 2024.

Last year's total reached $1.66 trillion (£1.3 trillion) thanks to strong bank payouts on the back of higher interest rates in the US, UK and China, while reforms in Japan also fed through to provide a boost.

US tech giants Microsoft and Apple provided the largest payouts.

The quarterly Janus Henderson dividend report showed 86% of the world’s 1,200 biggest public companies increased their dividends or kept them steady in their most recent reporting period, while Japan was a major contributor as companies started returning more capital to shareholders and 91% either raising or maintaining payouts.

Microsoft Corporation (NASDAQ:MSFT) was the top payer for the first time since 2020, with Apple Inc (NASDAQ:AAPL, ETR:APC) in second and Exxon Mobil Corp (NYSE:NYSE:XOM, ETR:XONA) in third. Three Chinese companies were in the top 10- China Construction Bank, PetroChina and China Mobile.

BHP Group Ltd (LSE:BHP, ASX:BHP) fell to sixth from top position the previous year, part of a trend with miners cutting payouts.

In the final quarter of 2023 underlying dividends grew 7.2%.

“Pessimism over the global economy proved ill-founded in 2023 and although the outlook is uncertain, dividends are well supported,” said Ben Lofthouse, head of global equity income at Janus Henderson.

"Corporate cash flow in most sectors has remained strong and is providing plenty of firepower for dividends and share buybacks."

Janus Henderson forecasts dividends of $1.72 trillion for 2024, up 3.9% on a headline basis and equivalent to underlying growth of 5.0% as ordinary dividends grow but special payouts decrease.

The run-rate of dividend growth from US stocks in the fourth quarter "bodes well" for 2024, Lofthouse said, with Japanese companies also now embarking on a process of returning more capital to shareholders.

As well as special dividends, the underlying growth rate also takes account of currency swings, tweaks to dividend calendars and the index.

Read more on Proactive Investors CA


Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.