Where in the world have div­i­dends grown 27pc?

The Daily Telegraph - Your Money - - YOUR MONEY - James Con­ning­ton

Ja­panese and emerg­ing mar­ket com­pa­nies – not nor­mally as­so­ci­ated with in­vest­ment in­come – have posted the big­gest div­i­dend in­creases of any re­gion over the past year, data has shown.

In the sec­ond quar­ter of 2017, the div­i­dends paid by emerg­ing mar­ket com­pa­nies were 27pc higher than in the pre­vi­ous year, while Ja­panese com­pa­nies in­creased their pay­ments by 11.8pc dur­ing the same pe­riod.

The re­port, from fund com­pany Janus Hen­der­son, found that global div­i­dends hit an all-time quar­terly high of £347bn in the sec­ond three months of 2017, thanks to a 7.2pc in­crease in un­der­ly­ing div­i­dends world­wide. “Un­der­ly­ing” means ex­clud­ing spe­cial div­i­dends and be­fore the ef­fects of exchange rates are taken into ac­count.

Ev­ery re­gion ex­pe­ri­enced sig­nif­i­cant growth, with Bri­tish firms grow­ing their pay­ments by 6.1pc, North Amer­i­can com­pa­nies by 6.3pc, and Euro­pean busi­nesses by 5.8pc. The fig­ures demon­strate the grow­ing op­tions avail­able to in­come-seek­ing in­vestors out­side the UK.

In emerg­ing mar­kets, pay­ments di­verged be­tween coun­tries, but only Chile saw un­der­ly­ing div­i­dends fall.

In Brazil, the gi­ant min­ing group Vale re­stored its div­i­dend, more than qua­dru­pling the coun­try’s to­tal. In­done­sia was the big­gest emerg­ing mar­ket con­trib­u­tor, pay­ing £2.9bn in div­i­dends in the sec­ond quar­ter, with ev­ery com­pany in­creas­ing its pay­out.

Glob­ally, the 20 largest sec­ondquar­ter div­i­dend pay­ers ac­counted for 17pc of all div­i­dends paid. Swiss firm Nestlé has been the largest payer in re­cent years.

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