Janus Henderson Global Dividend Index: Boosted by Financials, US Dividends Surge to Record High
November 16 2022 - 8:30AM
Business Wire
- Higher payments from banks and financials drove US dividends up
6.7% on an underlying basis in the third quarter
- Pharmaceuticals, technology and retail were significant
contributors to US dividend growth
- 96% of US companies increased dividends or held them steady
during the quarter
- Globally, surging oil profits drove dividends to $415.9bn, also
a record for Q3
US dividends increased 6.7% on an underlying basis to a new
all-time high of $146.2bn during the third quarter of 2022,
according to the latest Janus Henderson Global Dividend Index. For
the second consecutive quarter, financials made the largest
contribution to dividend growth, accounting for almost two-fifths
of the underlying increase.
Globally, soaring energy prices fuelled a significant increase
in dividends during the quarter, as oil companies distributed
record profits to shareholders. The global total paid rose by 7.0%
on a headline basis to $415.9bn, easily a record for the third
quarter. The underlying increase was 10.3% once the strength of the
dollar and other factors were taken into account. Globally, 90% of
companies raised dividends or held them steady, slightly below the
94% recorded in the first half of the year.
Surging oil dividends offset a slump in mining
payouts
Oil companies all over the world hiked their payouts, largely
via special dividends rather than an increase in their regular
payments. Oil dividends were particularly strong in emerging
markets, Asia and North America with the biggest increase coming
from Petrobras in Brazil.
Upgraded forecast
The encouraging third quarter has prompted a $30bn upgrade in
Janus Henderson’s full-year headline figures, driven mainly by
higher one-off special dividends, strength in the oil sector and in
Asia. Janus Henderson now expects headline dividends of $1.56
trillion1, up 8.3% year-on-year. Underlying growth is set to be
8.9%, an increase of 0.4 percentage points compared to Janus
Henderson’s expectations three months ago and still firmly ahead of
the 5-6% longer-term dividend growth trend.
Matt Peron, Director of Research at Janus Henderson said:
“Given the challenges facing investors in 2022, record high
dividend payments are a rare silver lining for those who rotated
assets into dividend paying stocks in defensive sectors. Looking
ahead to 2023, slower economic growth is likely to impact dividend
payments globally. However, in the US, dividend payments tend to
rise and fall far less than other parts of the world, as
demonstrated during the depths of the COVID-19 lockdowns, which is
welcome news for income investors.”
Notes to editors
Our headline growth rate describes the change in the total
dollar amount paid by companies compared to the corresponding
quarter each year. Our underlying figure adjusts for the distortion
that can be caused by one-off special dividends, changing exchange
rates, the effect of companies entering and leaving the global top
1,200 that comprise our index and the impact of changes in payment
dates. The latter two tend to be negligible over the course of a
whole year at the global level, though they can have a greater
impact in any one quarter, geography or sector.
About Janus Henderson
Janus Henderson Group is a leading global active asset manager
dedicated to helping investors achieve long-term financial goals
through a broad range of investment solutions, including equities,
fixed income, multi-asset, and alternative asset class
strategies.
At 30 September 2022, Janus Henderson had approximately US$275
billion in assets under management, more than 2,000 employees, and
offices in 23 cities worldwide. Headquartered in London, the
company is listed on the NYSE and the ASX.
Source: Janus Henderson Group plc
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1 Janus Henderson has removed all Russian
companies from the index and restated all historic data. Russian
companies have only contributed 1.5% to global payouts over the
last decade consequently the long-term impact is small.
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