Global dividends soar as world economy gets back on track

Global dividends surged to a record in the third quarter, as the global economy continues its post-crisis normalisation and confidence improves, according to fund manager Janus Henderson.

Janus Henderson’s Global Dividend Index showed that dividends jumped 14.5% to $328.1billion (€278.6 billion) in the third quarter.

The headline growth rate was the fastest increase in any quarter in over three years and was pushed higher by generous special dividends. It took the Janus Henderson Global Dividend Index to 168.2 – the highest recorded level – with companies on track to deliver record dividends in 2017.

Meanwhile forecasts for 2017 dividends were also upgraded to a record $1.249 trillion.

There was underlying growth in every region and sector, though growth rates varied widely. The UK put in the strongest performance, having lagged the rest of the world over the last year, while emerging markets were weakest due to a decline in China for the third year running.

Ben Lofthouse, global equity income fund manager at Janus Henderson, said: “After record second and third quarters, the world’s listed companies are comfortably on course to deliver the highest ever annual total this year.

“Underlying growth is around twice as fast as we anticipated at the beginning of the year, helped by broad and synchronised global economic growth, while the headline growth rate has been pushed higher by a weaker US dollar and higher special dividends.”

©2017 funds europe

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