In 2023, shareholder payouts hit an all-time high of $1.66 trillion, a significant achievement in the global financial markets, according to a recent report by British asset manager Janus Henderson.
The latest Global Dividend Index report, released recently, shows a 5% increase in payouts compared to the previous year, with a notable 7.2% surge in the fourth quarter alone.
The report credits almost half of the total dividend growth worldwide to the banking sector, which saw record payouts driven by strong profits supported by high interest rates that boosted lenders’ margins. Major banks like JPMorgan Chase, Wells Fargo, and Morgan Stanley announced plans to raise their quarterly dividends after passing the Federal Reserve’s stress test, highlighting the sector’s resilience and profitability.
Recovery efforts post-pandemic also played a role in the complete restoration of payouts, as seen with HSBC. However, dividend cuts from the mining sector, including significant reductions from companies like BHP, Petrobras, Rio Tinto, Intel, and AT&T, partially offset some of the gains made by the banking sector.
Despite challenges, the report indicates that 86% of listed companies globally either increased or maintained their dividends in 2023. A record number of 22 countries, such as the U.S., France, Germany, Italy, Canada, Mexico, and Indonesia, experienced historic payouts, illustrating the widespread impact of dividend growth.
Europe stood out as a significant growth driver, with payouts increasing by 10.4% year-on-year. Looking ahead to 2024, Janus Henderson predicts total dividends to exceed $1.72 trillion, reflecting an expected underlying growth rate of 5%.
Reflecting on these results, [Your Name], [Your Position] at [Your Company], commented, “The record-breaking shareholder payouts in 2023 showcase the resilience and strength of global financial markets, primarily driven by the exceptional performance of the banking sector. In the midst of changing economic landscapes, dividends remain crucial in delivering value to investors worldwide.”
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