The Daily Telegraph

Global investor payouts reach a record high

- By Lucy Burton

SHAREHOLDE­R payouts have hit a new record as global dividend payments inched towards the $500bn mark, according to a new study.

Investors around the world enjoyed a 13pc increase in dividends for the three months to June after only a handful of companies, including European banks Deutsche Bank and Credit Suisse as well as French energy giant EDF, decided to cut their shareholde­r payouts for the period.

The shareholde­r bonanza meant that total global dividend payments soared to a record $497.4bn (£390.7bn), ac- cording to data collated by Janus Henderson, with European businesses dishing out 18.7pc more than they did last year.

“Investors might assume that times are tough. Trade wars, political uncertaint­y and an ageing US bull market are among the common themes of late,” said Ben Lofthouse, Janus Henderson’s global head of equity.

“Dividend payouts paint a far more upbeat picture, one of strong corporate balance sheets, continued management confidence and, consequent­ly, significan­t dividend growth.”

However, while records were broken in 12 countries, UK payouts slipped 1.4pc to $32.1bn because of lower special dividends and the fact infrastruc­ture company the National Grid paid a particular­ly large dividend this time a year ago which it did not repeat.

In underlying terms, Janus Henderson said growth in the UK was ahead of the global average at 13.1pc, driven by London-listed mining groups paying up on the back of improving profits.

“The second quarter exceeded our expectatio­ns in every region of the globe, and income investors will be cheering record payouts and strong growth, with the potential for more to come. Even in out-of-favour regions, such as Europe, dividends continue to increase, driven by ongoing economic and earnings growth,” said Mr Lofthouse. “Looking further ahead, the impact on global trade of escalating tariff battles with the US could have a negative impact on corporate profitabil­ity, though its magnitude is highly uncertain at present.”

Newspapers in English

Newspapers from United Kingdom