The next focusIR Investor Webinar takes places on 14th May with guest speakers from Blue Whale Growth Fund, Taseko Mines, Kavango Resources and CQS Natural Resources fund. Please register here.

Less Ads, More Data, More Tools Register for FREE

Global dividends pass $1 trillion mark in 2013-study

Mon, 24th Feb 2014 17:24

* Global dividends up 43 pct since 2009 - Henderson GI

* $1 in every $7 coming from emerging markets

* Japan, U.S. slow pace of growth in 2013

* Growth seen picking up pace again this year

By Joshua Franklin

LONDON, Feb 24 (Reuters) - Shareholders received more than$1 trillion in global dividends for the first time in 2013,buoyed by growth in payouts from emerging market firms, a studyshowed.

Dividend payments grew 43 percent since 2009, the researchby Henderson Global Investors found, hitting $1.03 trillion lastyear. One in every $7 came from EM firms, dividends from whichhave risen 107 percent over the past five years.

Companies in Brazil, Russia, India and China wereresponsible for much of that growth, which came despite aslowdown in many markets since May after the U.S. FederalReserve flagged plans to wind down its monetary stimulusprogramme.

"The trillion dollar dividend is a huge milestone for equityinvestors and illustrates that dividends are now a vitalcomponent of investors' returns," Henderson Chief ExecutiveAndrew Formica said.

The study analysed dividends from the 1,200 largestcompanies by market capitalisation around the world from 2009and used averages to estimate payments for other listedcompanies.

The emerging market growth helped pick up the slack fromcontinental Europe, which posted growth of just 7.8 percent overthe same period, though it was still the second largest regionfor dividends in 2013 behind the United States.

Dividends from technology companies have grown the most overthe past five years, more than doubling since 2009, the studyfound, but financial firms accounted for by far the largestshare of dividends in 2013, providing almost a quarter.

Royal Dutch Shell was the top dividend payer lastyear, followed by Exxon Mobil with Apple rounding out the top three.

Despite passing the $1 trillion milestone, global dividendgrowth still slowed from the year before, to 2.8 percent from7.7 percent, weighed down by slowdowns in Japan and the UnitedStates, where a spate of special dividends were not repeated.

Henderson forecast dividend growth to rebound in 2014,however, with improved strength in developed markets and apositive outlook for corporate earnings driving growth asinvestors hunt for higher returns.

"Ageing populations must increasingly rely less on statepensions and more on their own savings to provide forretirement," Formica said. "Not only that, but they will need tostay invested in equities much longer than in the past too. Thisdemand for equity income is a trend we see continuing through2014 and beyond."

Related Shares

More News
27 Oct 2022 07:30

Shell announces $4bn share buyback as Q3 profits beat expectations

(Sharecast News) - Oil giant Shell announced a $4bn share buyback on Thursday as it posted better-than-expected third-quarter profits.

21 Apr 2022 11:53

Shell turning to China to offload Russian business - report

(Sharecast News) - Shell is reportedly looking to China as it looks to offload its Russian business.

15 Feb 2022 15:54

Shell preparing to sell North Sea gas fields - report

(Sharecast News) - Shell is reportedly preparing to launch the sale of its stakes in two clusters of gas fields in the southern British North Sea, par...

7 Feb 2022 10:52

Berenberg nudges up target price on Shell

(Sharecast News) - Analysts at Berenberg slightly raised their target price on oil and gas giant Shell from 2,350.0p to 2,375.0p on Monday, stating th...

31 Jan 2022 10:53

TOP NEWS SUMMARY: Shell and BHP share unifications go into effect

TOP NEWS SUMMARY: Shell and BHP share unifications go into effect

Login to your account

Don't have an account? Click here to register.

Quickpicks are a member only feature

Login to your account

Don't have an account? Click here to register.