Global Dividend Index from Janus Henderson reveals that the global corporate dividends have touched an all time high for the third quarter. Needless to say, the stat indicates the robust health of the corporate sector around the world.
According to the index, dividend payouts increased by 5.1 per cent to a comfortable third-quarter record of $354.2 billion. The United States, Canada, Taiwan, and India all witnessed all-time record quarterly payouts, while China posted positive trend in dividend payment after three years of decline.
The following are the main highlights of the report.
- Global dividends rose 5.1 per cent in Q3 to a third-quarter record of $354.2bn.
- Underlying growth was 9.2 per cent, continuing the strong growth reported in Q2.
- All-time record payouts in Canada, Taiwan, India andthe United States, but Australia lagged well behind.
- Chinese dividends grew for the first time in four years.
- Dividends forecast to be $1.359 trillion in 2018 with underlying growth upgraded to 8.1 per cent.
Janus Henderson’s forecast for headline growth remains unchanged at 8.5 per cent, taking the total dividends for 2018 to $1.359 trillion. On an underlying basis, however, this means growth in 2018 will be 8.1 per cent, up from 7.4 per cent in forecast at the time of the last edition of the JHGDI.
Ben Lofthouse, head of global equity income at Janus Henderson said: “The third quarter exceeded our expectations, but more importantly, the quality of growth was better than we expected. It came despite a negative impact from exchange rate moves and a lower level of special dividends. Importantly, our core underlying measure of growth was strong.”
“2018 may be a volatile and more challenging year for stock markets, but steady profit growth means dividends should continue to make steady progress.”
“Expectations for corporate earnings growth in 2019 are starting to come under some pressure, given the late stage of the economic cycle. That is not to say that profits themselves are set to fall, however, rather that the pace of expansion may now be slower than previously thought. Growing profits and strong cash flow mean that dividends should continue to be well supported and so investors seeking an income from their shares should feel confident about the year ahead.”