Janus Henderson Global Dividend Index: US Companies Distributed Record High $574.2 Billion in Dividends in 2022
March 01 2023 - 8:30AM
Business Wire
Higher Interest Rates Could Slow Growth In 2023
- US dividends increased 7.6% in 2022 with Oil producers and
Financials accounting for nearly two-thirds of this growth
- US dividend growth slowed in each successive quarter in 2022;
dropping from 10.4% in Q1 to 5.5% in Q4
- 94% of US companies raised or maintained dividend payments in
2022
- Globally, dividends rose 8.4% to a record $1.56 trillion;
underlying growth was 13.9%
- In 2023, global dividend growth is expected to slow to 2.3% on
a headline basis, equivalent to an underlying increase of 3.4%
US dividends increased 7.6% on an underlying basis to a record
high $574.2 billion in 2022, according to the latest Janus
Henderson Global Dividend Index. Oil producers accounted for almost
a third of US growth in 2022, as cash flows soared on the back of
high energy prices and dividends rose steadily. Financials
accounted for another third of US growth, with Wells Fargo, Morgan
Stanley and Blackstone making the largest contributions. The sole
weak spot was the telecommunications sector, where AT&T’s
near-halving of its dividend had a significant impact on
growth.
Globally, dividends rose 8.4% to a record $1.56 trillion,
matching Janus Henderson’s forecast. After adjusting for the
dollar’s rise against most currencies, as well as lower special
dividends and other technical factors, underlying growth was even
stronger at 13.9%.
Twelve countries saw record payouts Global dividend
growth was so strong that twelve countries posted record payments
in dollar terms. These included the US, Canada, Brazil, China,
India and Taiwan, but a number of others posted records in their
local currencies, including France, Germany, Japan and
Australia.
Strong Finish to 2022 By the fourth quarter, global
dividend growth had slowed to 7.8% on an underlying basis. However,
this was an impressive result given Q4 2021 was boosted by catch-up
payments from cuts made during the pandemic, especially in Europe,
making it a tough comparator. There were also signs that higher
interest rates may have begun to impact companies’ willingness to
grow dividends – in the US, for example, growth in the fourth
quarter slowed to 5.5%.
Janus Henderson forecasts slower global growth in 2023, with
payments of $1.60 trillion, up 2.3% on a headline basis, equivalent
to an underlying increase of 3.4%.
Matt Peron, Director of Research at Janus Henderson said:
“Corporate balance sheets in the US remain healthy, which is
important for future dividend growth. However, given earnings
growth expectations are quite muted, and perhaps still too
optimistic due to the expected impact of tighter policy, we are
cautious in our outlook for US dividend growth in 2023.”
To receive a copy of the latest Janus Henderson Global Dividend
Index, click here.
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.
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At 31 December 2022, Janus Henderson had approximately US$287
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.
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