PARIS (AFP) – Global dividend payments hit a record USD1.66 trillion in 2023 according to a report by asset manager Janus Henderson, with banks the key driver in payouts to shareholders.
Dividend payments rose by 5.6 per cent in 2023 compared to the preceding year, and were 15 per cent higher than in 2019, the year before the COVID pandemic sent the world economy into a tailspin.
The rise in profits paid out to shareholders was broad based, with 86 per cent of companies holding steady or raising dividends, and 22 countries setting records including the United States, France, Germany, Italy, Canada, Mexico and Indonesia.
The growth in dividend payouts was driven by the banking sector, which also hit a record, but their positive impact was almost entirely offset by cuts from the mining sector, which saw its profits crimped by lower commodity prices.
“Pessimism over the global economy proved ill-founded in 2023 and although the outlook is uncertain, dividends are well supported,” said head of global equity income at Janus Henderson Ben Lofthouse.
The firm said it expects 2024 to show similar underlying growth to 2023, when it rose by five per cent.
