By Charlie Conchie
Global dividend payouts surged to record levels in the second quarter of the year as oil and financial firms paid out bumper sums to shareholders, new data has revealed.
Dividends surged 11.3 per cent on a headline basis to an all-time quarterly high of $544.8bn in the second quarter of the year, according to the latest Janus Henderson Global Dividend Index, while underlying growth surged ahead at 19.1 per cent, taking into account the strength of the US dollar and other factors.
Analysts at Janus Henderson said that 94 per cent of firms had hiked their dividend payments or held them steady in the second quarter, with oil, financials and car manufacturers leading the charge.
“Despite the significant economic disruption caused by the pandemic, global dividends have surpassed pre-pandemic levels,” analysts said.
“Moreover, the recovery is so strong that dividends are now only 2.3 per cent below the long-term trend, although this marginal shortfall can be attributed to the dollar’s recent strength.”
Janus Henderson has now hiked its forecast for the year $1.56tn – up from $1.54tn last quarter – translating into headline growth of 5.8 per cent year-on-year.
The primary regional drivers for payouts in the second quarter were Europe and the UK, Janus Henderson said, with the regions showing a booming recovery from the impact of the pandemic.
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