During the world’s worst crisis since the second world war, profits and dividends in Asia were remarkably resilient compared to the rest of the world. Building on the last three editions of research tracking the trends in dividends paid by companies listed across Asia Pacific, the latest edition of the Henderson Far East Income Dividend Index has enhanced its analysis with the inclusion of research on profits and dividends globally – highlighting how Asia is increasingly becoming a powerhouse. Whether we look at profit, cash balances, net debts, or cash flow, the region’s companies are showing that the fast-growing dividends they are paying are extremely well supported by fundamentals.

  Key takeaways:

  • Dividends in Asia were much more resilient than expected - falling by 5.6% in 2020, compared to a 9.3% decline for the rest of the world.
  • Asia Pacific ex Japan has beaten the rest of the world in the profit race, over the last one, three, five, and ten years. In 2020, profits from Asia made up 36% of the global total, up from just 23% a decade earlier.
  • Whether we look at profit, cash balances, net debts, or cash flow, the region’s companies are showing that the fast-growing dividends they are paying are extremely well supported by fundamentals.