Global dividends break first quarter record in post-pandemic surge
The latest edition of the Janus Henderson Global Dividend Index shows that global dividends surged 11% during the first quarter of 2022. Client Portfolio Manager Jane Shoemake discusses the factors that led to the growth and outlines our expectations for the rest of the year.
- Global dividends jumped by 11% to a total of US$302.5 billion in the first quarter of 2022 – a record for the seasonally quieter first three months of the year.
- Every region in our index saw double-digit growth in dividends and every sector posted increases, with particular strength seen in oil and mining. At the country level, the US, Canada and Denmark broke all-time quarterly records.
- We are maintaining our expectations for the remaining quarters of the year given the uncertain global economic outlook and rising geopolitical risks. However, the inclusion of the robust Q1 numbers increases our forecast slightly for 2022.
Jane Shoemake: Global dividends had a strong start to 2022, recording first quarter growth of 11%, with payments of over US$300 billion, a record for what is commonly a seasonally quieter period.
One of the main drivers is the ongoing normalisation of payouts following the disruption caused by the pandemic. While growth was seen on a very broad basis across different sectors and geographies, the US, Canada and Denmark were especially notable, setting all-time quarterly records. Meanwhile, parts of Asia, such as Hong Kong, were weaker, with lockdowns continuing to plague economies.
Looking ahead, we are not changing our expectations for the remainder of the year, despite the strong first quarter, and continue to expect payments to reach US$1.4 trillion, an increase of around 5%. We’re not changing the forecasts because the world’s economy faces a number of challenges – the war in Ukraine, increased geopolitical tensions, high energy and commodity prices, rapid inflation, and a rising interest rate environment – all of which will have an impact on company profits as the year progresses.
All dollar figures are in US dollars (USD).
This information is issued by Janus Henderson Investors (Australia) Institutional Funds Management Limited (AFSL 444266, ABN 16 165 119 531). The information herein shall not in any way constitute advice or an invitation to invest. It is solely for information purposes and subject to change without notice. This information does not purport to be a comprehensive statement or description of any markets or securities referred to within. Any references to individual securities do not constitute a securities recommendation. Past performance is not indicative of future performance. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.
Whilst Janus Henderson Investors (Australia) Institutional Funds Management Limited believe that the information is correct at the date of this document, no warranty or representation is given to this effect and no responsibility can be accepted by Janus Henderson Investors (Australia) Institutional Funds Management Limited to any end users for any action taken on the basis of this information. All opinions and estimates in this information are subject to change without notice and are the views of the author at the time of publication. Janus Henderson Investors (Australia) Institutional Funds Management Limited is not under any obligation to update this information to the extent that it is or becomes out of date or incorrect.