Global dividends hit record US$1.25 trillion in 2017, more to come

MILAN: Global dividends rose 7.7% to an all-time high of US$1.25 trillion (RM4.86 trillion) last year boosted by a buoyant world economy and rising corporate confidence, Janus Henderson said yesterday, predicting another record year ahead.

The surge – the strongest since 2014 – was driven by increases in every region and almost every industry with record showings in 11 countries including the United States, Japan, Switzerland, Hong Kong, Taiwan and the Netherlands, the investment manager added.

For 2018, Janus Henderson expects dividends to keep the same 7.7% growth rate to reach around US$1.35 trillion, as corporate and economic growth remains strong even in more volatile financial markets.

“Companies are seeing rising profits and healthy cash flows, and that’s enabling them to fund generous dividends. The record payout last year was almost threequarters higher than in 2009, and there is more to come,” Ben Lofthouse, director of Global Equity Income at Janus Henderson, said.

“The next few months are set fair, and we expect global dividends to break new records in 2018.”

Royal Dutch Shell kept its position as the world’s biggest dividend payer. China Mobile rose to second from 19th last year and was followed by Exxon Mobil, Apple and Microsoft, the report said.

The top 20 payers accounted for 15.7% of the total payout.

Adjusting for movements in exchange rates, special one-off dividends and other factors, global dividends rose 6.8% last year and are expected to rise another 6.1% in 2018. – Reuters