Global dividends fall 0.9% as big companies slash payouts
The study also revealed that underlying growth was 0.3% after adjusting for one-off special dividends and exchange rates
After adjusting for one-off special dividends and exchange rates, underlying growth came in at 0.3%, the study found. However, when the two biggest cutters — Brazilian oil producer Petrobras and Australian miner BHP — were excluded, underlying growth was 5.3%.
The steep cuts came primarily from the mining sector, where half of companies reduced payouts, and from oil producers in Brazil and Taiwan, subverting the overall oil sector growth trend.
Chemicals and property also reported lower dividends, mainly in Asia, reflecting the tough market conditions in the region.
Global dividends hit Q1 record of $326.7bn
The cuts were offset by strong banking dividends in most parts of the world and by rising payouts in a wide range of sectors, especially utilities and vehicle manufacturers.
According to Janus Henderson, nine out of ten companies in the global index raised dividends or held them steady. For UK dividends specifically, growth was held back by cuts in the mining sector, with the exception of Glencore.
The reductions masked growth in the wider market, with non-mining companies in the index delivering double-digit increases.
Following the global trend, banks, oil companies and utilities made the most important contributions to UK growth.
Europe continued the growth seen in the second quarter of the year, with payouts rising 22.9% on an underlying basis, which left Europe «comfortably on track to deliver record distributions this year», the asset manager said.
Global dividends hit Q1 record of $326.7bn
US dividends grew 4.5%, which Janus Henderson described as «slow yet robust», with 98% of US
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