Last year, global dividends reached an all-time high despite high interest rates. Dividends are expected to grow even larger this year as corporate cash flow improves.
On the 12th (local time), Bloomberg cited a report from the U.S. asset management firm Janus Henderson, stating that global dividends last year amounted to $1.6 trillion, a 5% increase from the previous year ($1.57 trillion). This is the largest scale ever recorded.
It is analyzed that dividends increased mainly in the banking sector, which saw a surge in loan income due to high interest rates. Significant dividend growth was also confirmed in the technology, automotive manufacturing, and energy sectors.
Last year, 86% of global companies either increased or maintained their dividends.
Ben Lofthouse, Head of Global Equity Income at Janus Henderson, explained, “Corporate cash flows remained strong across most sectors last year, providing sufficient strength to pay dividends.”
The scale of global dividends has been on the rise for three consecutive years after shrinking to $1.24 trillion in 2020, when the COVID-19 pandemic caused shutdowns (temporary work stoppages).
Global dividends this year are expected to reach a total of $1.72 trillion. This is attributed to the robustness of corporate balance sheets despite concerns about economic recession and high debt repayment costs.
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