Where in the world have dividends grown 27pc?
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.