Dividend boom forecast to continue in 2018

Dividends_growthFollowing a record-breaking year in 2017, dividend growth is forecast to continue its winning streak in 2018, driven by a strengthening world economy and rising corporate confidence.

According to the Janus Henderson Global Dividend Index, if the US dollar maintains its current level against other major currencies, exchange-rate gains will help push headline growth to 7.7%, yielding a new record of $1.348 trillion (€1.085 trillion).

The company forecasts underlying growth of 6.1% and again expects expansion from every region of the world.

The findings are at variance with downbeat predictions of forthcoming dividend performance.

Dividends rose in every region of the world, and across every industry grouping in 2017 with the world’s three largest economies - the US, EU and China - expanding at the same time, while rising profits and healthy cash flows meant companies could fund generous dividends.

In 2017 global dividends saw their fastest rate of growth since 2014, and reached a total of $1.252 trillion.

Records were broken in 11 of the index’s 41 countries, among them the United States, Japan, Switzerland, Hong Kong, Taiwan, and the Netherlands.

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