The dividends distributed internationally reached a record of 1.75 billion dollars in 2024according to the last Janus Henderson (JH) Global Dividend Index. The manager explains that the 6.6% increase recorded last year The effect of minors extraordinary dividends and the appreciation of the dollar must be refined, so the growth was 5.2% in the total dividends distributed worldwide.
It is not a minor issue since More and more managers and investors pay more attention to companies and banks that pay dividends when investing or assembling portfolios. It is a trend that grows. It should be noted that the result of 2024 exceeded the forecast of Janus Henderson of 1.73 billion dollars, mainly due to a fourth better quarter than expected in the United States and Japan. In the fourth quarter, the deals rose 7.3%.
JH’s report indicates that In 17 of the 49 countries that make up the index, record figures were distributed, Highlighting among them the US, Canada, France, Japan and China, and even several large companies that distributed dividends for the first time had a disproportionate impact.
Dividends 2024: What are the companies that triggered the most bulky payments?
In this sense, The most bulky were those of Meta and Alphabet in the US and Alibaba in China. Among the three they distributed 15.1 billion dollars, a figure that represents 1.3 percentage points or a fifth of the global growth of dividends in 2024. While, at the sector level, almost half of the increase in dividends came from the financial sector, mainly banks, whose distributions increased by 12.5%.
The growth of dividends in the media sector was also importantduplicating thanks to the payments of Goal and Alphabet. Anyway, the increase was widespread, with Double digit increases in telecommunications, construction, insurance, durable consumer goods and leisure.
Instead, Mining and Transportation were the sectors with the worst behavior, since they paid together 26,000 million of dollars less than in 2023. Another relevant fact is that 88% of companies increased or maintained remuneration worldwide.
In the global ranking, for the second consecutive year, Microsoft was, by far, the company that divided the most dividends worldwide, yes ok Exxon, that expanded again its perimeter after the acquisition of Pioneer Resources, climbed to second place, a place that it has not occupied since 2016.
Dividends: What is projected for 2025
As for 2025, JH hopes that dividends Create 5%a forecast that would carry the total payments to the record figure of 1.83 billion dollars. Net growth It will probably be closer to 5.1% in the whole of the year, given that The strength of the dollar against numerous currencies slows general growth.
As explained by Jane ShoeMake, Customer portfolio administrator of the JH Global Equity Incom Against those who thought that this group of signatures would avoid this way of returning capital to the shareholders.
“Working thus show that they are the same as other successful companies that preceded them, in the sense that, as they mature, they begin to generate cash surpluses that can return to their investors. These are the companies that are currently giving a significant impulse to the worldwide growth of dividends, ”says Shoemake. It is that the market, he added, continues to expect an increase in business benefits this year and the consensus forecast points out that it exceeds 10%.
“Although this can sin of optimism in the face of the current economic and geopolitical challenges of the world, the good news for income centered is that dividends tend to show more resilience than the benefits throughout the economic cycle. Companies decide how much distribute shareholders, so there is much less variability in dividend income flows. For this reason, we hope that dividends will reach a new record this year “, The manager argued.
From JH they hope The world economy continues to grow at a reasonable pacealthough the risk of tariffs and the possibility that they produce commercial wars, together with the high level of public indebtedness of many large economies, could cause greater volatility in 2025, in fact, yields in some fixed income markets have climbed up to levels not observed in several years
But the bonanza for the shareholders was not only for the markets of Europe and the US and Japan, but also registered a decent growth some key emerging markets such as India, as well as Asian markets such as Singapore and South Korea.
Source: Ambito
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