Global dividends reach new record, with banks expected to drive further growth5 Sep 2023 05:59
Dividends paid out by major companies increased in the past quarter and is expected to continue growing this year, even with global growth slowing.
Growth has been driven by record payouts by banks and in Europe especially, which outstripped all other regions.
Roughly 88% of the world's largest companies either increased or held their shareholder payouts steady in the second quarter, according to data analysed by Janus Henderson from the 1,200 biggest public companies by market value.
A total of US$568.1 billion was paid out in dividends in the period, up 4.9% on the second quarter of the previous year, or up 6.3% if special dividends were ignored in both periods, as these enjoyed an outsized quarter in 2022.
Payouts are likely to grow 5% to a record US$1.64 trillion in 2023, the fund manager forecast.
Banks contributed more than half of global dividend growth in the past quarter, with UK names including Lloyds Banking Group PLC (LSE:LLOY) and Barclays PLC (LSE:BARC) hiking 15% and 20% to enable a record US$85.3 billion paid out by the sector in the quarter, up 19.7% on a year ago.
https://www.proactiveinvestors.co.uk/companies/news/1024957/global-dividends-reach-new-record-with-banks-expected-to-drive-further-growth-1024957.html