Global dividends break quarterly record

Global dividends broke an alltime record in the third quarter after being buoyed by rising corporate profits, according to a report published today by Janus Henderson.

The asset manager revealed that global dividends jumped to a new high of $354.2 billion (£276.2bn) in the months of July to September.

Underlying growth, the firm’s chosen measure of core dividend performance, was 9.2 per cent, continuing the strong increase seen in the second quarter, although a stronger dollar and lower special dividends suppressed headline growth year-on-year.

Payouts in the UK, once lower special dividends, a weaker pound, and calendar effects were taken into account, rose by 11.1 per cent.

Canada, Taiwan, India and the US reported record dividends for the period, but Australia’s performance was the “weakest in the developed world”, edging up 1.3 per cent on an underlying basis.

Janus Henderson forecast dividends to reach £1.06 trillion in 2018, upgrading annual underlying growth from 7.4 per cent to 8.1 per cent.

Head of global equity income Ben Lofthouse said: “The third quarter exceeded our expectations but, more importantly, the quality of growth was better than we expected. It came despite a negative impact from exchange rate moves and a lower level of special dividends.

“Growing profits and strong cash flow mean that dividends should continue to be well supported and so investors seeking an income from their shares should feel confident about the year ahead.” 0 Ben Lofthouse: ‘Steady progress should continue’