dividends

Dividends worldwide rose by 11.3 percent in nominal terms in the second quarter of 2022 to a historic quarterly record of 544.8 billion dollars, the latest Global Dividend Index report by Janus Henderson shows. 

If the strong US dollar and other underlying factors are taken into account, underlying growth is even stronger at 19.1 percent. Some 94 percent of companies surveyed either paid out more in the second quarter or kept payouts stable.

With their stable income and preference for defensive stocks, conservative dividend strategies can be seen as an alternative to government bonds at times of stock market uncertainty. Are they really? Yes, says fund manager Thomas Schüssler of the well-known DWS Top Dividende. But it is the equity markets that are currently driving the inflow.

Dividends paid by European companies on an underlying basis have sunk by more than 28% in 2020 to €141 billion, according to the Janus Henderson Global Dividend Index. This is the lowest figure since 2009.

Dividend payments fell by a record 22% in the second quarter, hitting their lowest level in eight years, according to the latest Global Dividend Index from Janus Henderson Investors. Europe and the UK were the worst affected regions.

Back in May, the asset manager had already predicted a decline in dividend payments between 15% and 35%. Global dividend fell by $108.1 billion (€91.3 billion) to $382.2 billion in the second quarter.

Global dividend yields are expected to fall between 15 and 35% this year as the coronavirus pandemic hits companies’ earnings, according to Janus Henderson Investors.

A quarter of the 600 largest listed companies in Europe have already suspended or cancelled dividend payments for this year, according to a study by Germany’s DZ Bank. As a consequence, total dividend payouts are to fall by some €310 billion.

The bank’s analysts write that ‘an unprecedented cancellation of dividend payments is rolling over European stock markets’. They estimate 2019 payouts to fall by 23%, or €310 billion. 

Fund managers expect more companies to cut their dividends, following the example set by banks. However, many companies still are perfectly capable of maintaining their dividends, according to DPAM’s Laurent van Tuyckom.

Global dividends rose 3.5% in 2019 to a new record of  1.43 trillion dollars (1.32 trillion euros), according to the Janus Henderson Investors Global Dividend Index. Dividend growth in Europe lagged other markets.