Global dividends hit record US$568 billion in second quarter
DIVIDENDS paid by the world’s biggest listed companies soared to a record US$568.1 billion in the second quarter, with payouts to shareholders expected to grow further despite economic uncertainty, a study showed Wednesday.
Payments by the 1,200 biggest public companies rose more than expected, increasing by 4.9 per cent compared to the same April-to-June period last year, according to the report by asset management firm Janus Henderson.
Banks accounted for half of the world’s dividend growth as their margins were boosted by interest rate hikes, the report said.
Automakers represented one-seventh of the increase.
Firms in Europe, excluding Britain, led the pack with payouts rising by 9.7 per cent to US$184.5 billion. North American companies paid out US$165.3 billion, a 4.2 per cent increase.
Swiss food giant Nestle was the world’s biggest dividend payer, followed by British bank HSBC and German automaker Mercedes-Benz.
GET BT IN YOUR INBOX DAILY
Start and end each day with the latest news stories and analyses delivered straight to your inbox.
Ben Lofthouse, head of global equity income at Janus Henderson, said global economic growth is “moderating” as interest rates increase.
“Markets now expect global profits to be flat this year, after soaring to record highs in 2022, and when we speak to companies around the world, they are now more cautious about the outlook,” Lofthouse said.
Central banks have hiked rates as they battle high inflation. Lenders have responded by increasing their own rates, boosting their profits.
While a weaker economy is usually bad for banks, their rising margins are driving dividend payouts, Lofthouse said. AFP
KEYWORDS IN THIS ARTICLE
BT is now on Telegram!
For daily updates on weekdays and specially selected content for the weekend. Subscribe to t.me/BizTimes
Companies & Markets
Businessmen in Singapore placed on China’s wanted list weeks after money laundering raid in 2023
Stocks to watch: NetLink NBN Trust, Centurion, No Signboard
Haidilao restaurant operator Super Hi prices US IPO at US$19.56 per share
Chinese EV giants hammered by Biden tariff are welcome in Brazil
Hong Kong’s shaky crypto ETF debuts dent global hub aspirations
OpenAI, Reddit sign partnership on ChatGPT, AI products, ads