“Nearly half of global dividend growth in 2023 comes from banks.” (Photo: 123RF)
Large companies around the world paid more than US$1.655 billion in dividends to their shareholders in 2023, a new record, according to a study by asset manager Janus Henderson published on Wednesday.
The amounts returned to shareholders increased by 5.6% compared to 2022 and 15% compared to 2019, according to the census. It includes the 1,200 largest companies by market capitalization and representing 85% of dividends paid worldwide.
United States, France, Germany, Indonesia…: 22 countries recorded records this year with a particularly marked increase in Europe (+17.6%).
For the first time since the start of the study, two technology companies occupy the top of the ranking, in terms of profits redistributed to shareholders: Microsoft, whose dividends jumped by more than 10%, and Apple. Until 2014, no technology company had entered the top ten places.
The raw materials sector remains very present, but several companies have made “significant reductions”, reflecting their profits, such as the Brazilian company Petrobas, 2nd largest contributor in 2022, but absent from the top 20 in 2023. The mining company BHP, first in 2021 and 2022, falls to 6th place. ExxonMobil and PetroChina are in the top 5, Chevron is 11th.
However, “nearly half of the increase in dividends worldwide in 2023 comes from banks,” notes the report, which links this trend to the jump in profits in the sector enabled by the increase in interest rates.
“Pessimism about the global economy proved unfounded in 2023 (…) Corporate cash flows in most sectors remained strong”, allowing dividends to be fueled, explains Ben Lofthouse, who oversaw the editorial of the report.
For 2024, the asset manager forecasts that growth will continue, with payouts increasing by 3.9%.
2024-03-13 13:53:37
#annual #record #dividends #paid #companies #worldwide
