Global dividends jump to record high from the second quarter

The dividend data analyzed by Janus Henderson will be dominated by continental Europe as two-thirds of the region’s dividends are paid during the period.

Underlying growth here was the strongest since the second quarter of 2015 with European companies paying a record $176.5 billion, an increase of 18.7 percent year-on-year, as higher corporate profits in 2017 flowed into dividends, the report noted. Underlying growth was 7.5 percent, once the strength of European currencies compared to the second quarter last year was accounted for. France, Germany, Switzerland, the Netherlands, Belgium, Denmark along with also Ireland all broke brand-new records. Only a handful of companies, among them such as Deutsche Bank, EDF along with also Credit Suisse, cut their payouts in a bid to lower costs.

from the U.S., meanwhile, dividends rose 4.5 percent to a record $117.1 billion from the second quarter. “Underlying growth was 7.8 percent after lower special dividends along with also index adjustments were taken into account, the fastest expansion in two years. Even though their expansion was a touch slower than average from the second quarter, U.S. dividends have grown more steadily than anywhere else, declining in only four quarters over the last ten years,” the report stated.

Only one company in 50 from the U.S. cut its payout, Janus Henderson noted, with the largest firm to do so being GE as which commenced a restructuring program along with also a bid to reduce its debts.

from the rest of the planet, the index showed which Canadian dividends outpaced those from the U.S. while in Asia, underlying growth in dividends from the second quarter, year-by-year, was 13.5 percent in Hong Kong along with also 46.9 percent in Singapore. Japan, where the second quarter also marks a “seasonal dividend high-point” also saw 14.2 percent headline growth (12.3 percent underlying growth), also boosting the global total.

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