Global corporate dividends at record highs
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According to a report by Janus Henderson, $544.8 billion was paid out by 1,200 companies between April and June 2022.
Global corporations continued to pour heavily into dividends during the second quarter of the year, redistributing to their shareholders the colossal profits of the past year, according to the quarterly report of Janus Henderson published on Wednesday. With $544.8 billion between April and June paid out in dividends, the 1,200 companies surveyed by the asset manager on average distributed 11% more money than during the same period last year .
This is a new record for a second quarter, after an already prosperous start to the year. This increase comes even though the appreciation of the greenback in recent months has mechanically lowered the value of the amounts paid by companies outside the United States, with all dividends being converted into dollars in the study for to be able to make comparisons.
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Excluding currency effects and extraordinary payments, growth was 19.1%. It is even nearly 30% in Europe and the United Kingdom. Commodities, financial companies and car manufacturers drove this growth. In the top 10 of the most important redistributors, we find the Brazilian oil company Petrobras (1st), the Anglo-Australian mining company Rio Tinto (3rd), the German group Mercedes Benz (5th), but also the French bank BNP Paribas (6th) and the German insurer Allianz (8th). But all companies are affected by the trend: 94% of them have maintained or increased their payments.
With this momentum, Janus Henderson has further revised upwards the estimates for the year 2022, with dividends which they believe should reach 1.560 billion dollars, an increase of almost 6% compared to 2021.Stunningly, despite the huge economic disruption caused by the pandemic, global dividends are now above the record high they reached before the pandemic.“, underlines the report.
But the momentum could run out of steam in the coming months. “The rest of the year is unlikely to see such strong growth. Most wins “easy” have now been achieved, with post-Covid-19 catch-up almost completesaid Janus Henderson Global Equity Team Leader Ben Lofthouse.
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