Global dividends surge to a new record in second quarter of 2022
According to the latest Janus Henderson Global Dividend Index, global dividends surged 11.3% to an all-time quarterly high of $544.8 billion in Q2 2022. Client Portfolio Manager Jane Shoemake discusses the key drivers.
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- Global dividends have surpassed pre-pandemic levels and are now only 2.3% below the long-term trend. 94% of companies in our index either increased dividends or held them steady.
- The strong Q2 figures follow a profitable 2021 when companies enjoyed rising sales and expanding profit margins on the back of soaring post-pandemic demand.
- On a sector level, oil, financials, and auto manufacturers were the key contributors to Q2 dividend growth, while Europe and the UK were the primary regional drivers.
Jane Shoemake: Q2 was a record quarter for dividend payments around the world. Global payouts of $545 billion U.S. dollars were 11% higher year-on-year on a headline basis, though the underlying growth rate was considerably faster at 19% once a combination of factors, including the exceptional strength of the U.S. dollar, were taken into account.
The post-pandemic rebound has been so strong that global dividends have now surpassed their pre-pandemic levels. Europe and the UK were key drivers in the second quarter, delivering dividend growth almost a third higher on an underlying basis. Higher banking dividends, enabled by the relaxation of central bank constraints, and larger payouts from German car manufacturers, contributed significantly to this growth.
Looking more globally, oil companies contributed most to dividend growth, helped by rising energy prices. Given this record quarter, we are now expecting 2022 payouts to reach $1.56 trillion, up from our previous estimate of $1.54 trillion and equating to underlying growth this year of 8.5%.
Past performance does not predict future returns. Investing involves risk, including the possible loss of principal and fluctuation of value.
Unless otherwise stated, all data is sourced by Janus Henderson Investors as of 30 June 2022.