'Recession?'... Global Major Companies Record Highest Dividends in Q1 Ever

US Asset Management Firm Janus Henderson Analysis
1,200 Listed Companies, Q1 Dividends $326.7 Billion...12% Increase YoY

Despite concerns about an economic recession, major companies worldwide have expanded their dividends in the first quarter of this year.

According to Janus Henderson, a US asset management firm, on the 23rd (local time), 1,200 publicly traded companies worldwide paid out $326.7 billion in dividends from January to March this year. This represents a 12% increase compared to the same period last year.

In particular, US companies accounted for half of the total dividend payments. Dividends increased significantly in the real estate, tech, and healthcare sectors. Conversely, the mining sector saw a decrease in dividends due to falling commodity prices. Additionally, automobile manufacturers such as Ford and Volkswagen paid one-time dividends, causing the size of special dividends to increase at the largest rate in nine years.

Foreign media analyzed that this dividend expansion means that corporate profits remain robust despite the global stock markets being shaken by Russia's invasion of Ukraine, rising energy prices, and interest rate hikes. Ben Lofthouse, head of global equities at Janus Henderson, evaluated, "Considering the challenges the global economy faced last year, this (dividend) increase is quite impressive."

Excluding special dividends and currency fluctuations, dividends from major global companies increased by 3% in the first quarter of this year. The total dividend amount for this year is expected to reach $1.64 trillion, a 5% increase from a year ago. Janus Henderson's analysis suggests that dividends in the banking and oil sectors will increase significantly.

Experts believe that among corporate executives, the awareness that profits should not only be retained within the company but also returned to shareholders is gradually spreading. Mark Donovan, senior portfolio manager for US equities at Boston Partners, explained, "Executives have realized that increasing dividend payments and share buybacks enrich shareholders and ultimately help secure their own jobs."

Goldman Sachs expects dividends from major companies to increase by about 5% this year. Even if a recession scenario becomes reality, dividend payments are expected to decline only slightly.

Daniel Ferris, fund manager at asset management firm Federated Hermes, forecasted, "As companies reduce share buybacks and compete to attract investors amid worsening conditions, the popularity of dividend stocks, including tech companies, will rise."