Global dividends rose 5% on an underlying basis to a record $1.7trn in 2023, according to Janus Henderson’s latest global dividend index.
The quarterly report found that 86% of companies across the world increased or held payouts steady, while 22 countries including the US, France and Germany saw record levels of dividends.
The fourth quarter of last year was ‘particularly encouraging’, according to the US asset manager, with underlying dividend growth of 7.2%.
By region, Europe was a “key” factor in global payout growth, with dividends up by a record 10.4% year-on-year.
Japan’s contribution was also significant, though most developed countries in Asia-Pacific saw lower year-on-year payouts.
On a sector level, banks contributed half of the world’s dividend growth. However, Janus Henderson noted the positive impact from higher banking dividends was almost entirely offset by cuts from the mining sector.
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Meanwhile, vehicle manufacturer shareholders enjoyed a record year for payouts as the sector delivered an eighth of the world’s dividend growth in 2023.
The report also noted ‘encouraging’ growth for utilities, software and food among other industries.
Looking ahead, the firm expects dividends to be well supported this year, though one-off special payouts are likely to decline from the record levels seen in previous years.
Janus Henderson forecasts $1.72trn in dividends for 2024, up 3.9% on a headline basis and equivalent to underlying growth of 5%.
