Companies Continue to Raise Dividends

Despite worries of an economic slowdown, dividends hit a new record during the second quarter, according to the Janus Henderson Global Dividend Index, a quarterly measure of payouts from the 1,200 largest firms. Ben Lofthouse, Head of Global Equity Income, explains.

Key Takeaways

  • Total dividends reached $513.8 billion in Q2, up 1.1% from a year ago. A strong dollar slowed the rate of growth.
  • Underlying growth (which adjusts for currency changes, special dividends, timing effects and index changes) was a more encouraging 4.6%, in line with our forecast. Japan, Canada, France and Indonesia broke all-time records.
  • Our forecast for the year remains unchanged at $1.43 trillion, an increase of 4.2% in U.S. dollar terms, or 5.5% when looking at underlying growth.