{"id":77745,"date":"2019-02-21T00:50:53","date_gmt":"2019-02-20T23:50:53","guid":{"rendered":"http:\/\/beta.next-finance.net\/note\/global-dividends-surge-to-new-record-in-2018-with-more-growth-in-2019\/"},"modified":"2019-02-21T00:50:53","modified_gmt":"2019-02-20T23:50:53","slug":"global-dividends-surge-to-new-record-in-2018-with-more-growth-in-2019","status":"publish","type":"post","link":"http:\/\/beta.next-finance.net\/en\/note\/global-dividends-surge-to-new-record-in-2018-with-more-growth-in-2019\/","title":{"rendered":"Global dividends surge to new record in 2018, with more growth in 2019"},"content":{"rendered":"<p><em> <strong>Total dividends jumped 9.3% in<br \/>\nheadline terms to $1.37 trillion. On an underlying basis, Janus Henderson\u2019s<br \/>\npreferred measure of core growth, this was equivalent to an increase of 8.5%, the<br \/>\nbest performance since 2015, and above the long-term trend of 5-7%. Almost nine<br \/>\nin ten companies around the world raised their payouts or held them steady.<\/p>\n<ul>\n<li>  Global dividends rose 9.3% to a record $1.37 trillion, equivalent to core<br \/>\nunderlying growth of 8.5%, the best performance since 2015<\/li>\n<\/ul>\n<ul>\n<li>  Nine in ten companies globally increased dividends or held them flat<\/li>\n<\/ul>\n<ul>\n<li>  Thirteen countries delivered record payouts, including Japan, the US,<br \/>\nCanada, Germany and Russia<\/li>\n<\/ul>\n<ul>\n<li>  Emerging markets, North America and Japan performed strongest, while<br \/>\nEurope lagged behind<\/li>\n<\/ul>\n<ul>\n<li>  Banking and mining payouts rose strongly, while telecoms saw the weakest<br \/>\nperformance<\/li>\n<\/ul>\n<ul>\n<li>  Janus Henderson forecasts 2019 dividends 3.3% higher at 1.414 trillion,<br \/>\nequivalent to underlying growth of 5.1%<br \/>\n<\/strong> <\/em><\/li>\n<\/ul>\n<p>Emerging markets, Japan and North America performed strongly, while Europe<br \/>\nlagged behind. Thirteen countries delivered record payouts, including Japan, the<br \/>\nUS, Canada, Germany and Russia.<br \/>\nIn Q4, headline dividend growth was 8.3%, yielding a total $272.9bn, a record for<br \/>\nthe fourth quarter. Underlying growth was 8.0%. The Janus Henderson Global<br \/>\nDividend Index ended the year at a new record 187.3, meaning the world\u2019s<br \/>\ncompanies paid their shareholders a staggering $638bn more in 2018 than 2009,<br \/>\nwhen the index started.<\/p>\n<p>Record US dividends of $468.9bn were 7.8% higher on an underlying basis in 2018, boosted by<br \/>\nbanks, healthcare and technology companies. Only one in 25 US companies cut its payout. Canada<br \/>\nwas even stronger, thanks in particular to oil companies and banks, and enjoyed the fastest dividend<br \/>\ngrowth amongst the large, developed economies. Japan saw the second fastest growth, thanks to<br \/>\nhigher company profits and rising payout ratios.<\/p>\n<p>European dividends rose more slowly, up 5.4% on an underlying basis. They were held back by slow<br \/>\ngrowth in Switzerland and a big cut from Anheuser Busch in Belgium. It was not a bad year, however,<br \/>\nas nine tenths of European companies increased their dividends. Germany\u2019s strong performance<br \/>\nstood out, and France, Spain and Italy also did well. Headline growth benefited strongly from positive<br \/>\nexchange-rate effects earlier in the year.<br \/>\nIn Asia, Australia was the real weak spot in 2018. Australian dividends are heavily dependent on<br \/>\nbanks, with already high payout ratios and slow-growing profits, while the telecom operator Telstra cut<br \/>\nits distributions sharply in a bid to preserve cash. Australian dividends rose just 0.9% year-on-year.<br \/>\nOther countries in the region performed much better, and in South Korea, Samsung entered the<br \/>\nglobal top 20 payers for the first time. Four years ago, it was not even in the top 100.<br \/>\nAfter a weak first quarter, emerging market dividends bounced back strongly over the rest of the year.<br \/>\nFor the whole of 2018, they jumped 15.9% in underlying terms. Russia contributed most to growth<br \/>\nand saw record payouts. Chinese dividends rose strongly too.<br \/>\nGlobally, the mining sector showed the fastest growth in 2018 as companies restored payouts<\/p>\n<p>boosting the UK in particular where many of them are listed. Banking dividends, the largest dividend-<br \/>\npaying sector, jumped 13.6% on an underlying basis, while oil company distributions surged 15.4%.<\/p>\n<p>The telecoms sector stood out as the weakest, with payouts flat or down in half the countries in our<br \/>\nindex.<br \/>\nJanus Henderson forecasts underlying growth of 5.1% in 2019, which translates into headline growth<br \/>\nof 3.3%, on the assumption that prevailing exchange rates persist all year. That means the world\u2019s<br \/>\ncompanies are set to pay their shareholders $1.414 trillion this year.<\/p>\n<p>Ben Lofthouse, head of global equity income at Janus Henderson said: <em>\u201cDespite more<br \/>\nchallenging equity market conditions, investors can take comfort in the ability of the world\u2019s<br \/>\ncompanies to continue to generate income. Yields in many parts of the world are very attractive, while<br \/>\n8.5% dividend growth is ahead of the long-term trend. This strength reflects a number of factors;<br \/>\nseveral sectors, such as mining, oil and banking have been normalising their dividend payments, after<br \/>\na period of low or no dividends, while some of the biggest tech firms are increasingly adopting a<br \/>\ndividend-paying culture. The impact of tax cuts in the US clearly helped dividend growth there too.<br \/>\nFor the year ahead, we expect dividend growth to be more in line with the longer-run trend. Corporate<br \/>\nprofit expectations have fallen as global economic forecasts have been revised down, although most<br \/>\nobservers still expect companies to deliver positive earnings growth in 2019. Dividends in any case<br \/>\nare much less volatile than earnings, so we remain optimistic on the prospects for income investors.\u201d<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Global dividends rose to a new record in 2018, with a strong fourth quarter for<br \/>\ndividend payments despite more challenging equity market conditions, according to<br \/>\nthe latest Janus Henderson Global Dividend Index.<\/p>\n","protected":false},"author":20,"featured_media":77743,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[1481],"tags":[1655,1801,1651,1437,1724,2037,1951,2068],"_links":{"self":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/77745"}],"collection":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/users\/20"}],"replies":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/comments?post=77745"}],"version-history":[{"count":0,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/posts\/77745\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media\/77743"}],"wp:attachment":[{"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/media?parent=77745"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/categories?post=77745"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/beta.next-finance.net\/en\/wp-json\/wp\/v2\/tags?post=77745"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}