Janus Henderson Global Dividend Index: Boosted by Financials, US Dividends Surge to Record High

By: Janus Henderson Group plc via Business Wire

November 16, 2022 at 08:30 AM EST

Higher payments from banks and financials drove US dividends up 6.7% on an underlying basis in the third quarter
Pharmaceuticals, technology and retail were significant contributors to US dividend growth
96% of US companies increased dividends or held them steady during the quarter
Globally, surging oil profits drove dividends to $415.9bn, also a record for Q3

US dividends increased 6.7% on an underlying basis to a new all-time high of $146.2bn during the third quarter of 2022, according to the latest Janus Henderson Global Dividend Index. For the second consecutive quarter, financials made the largest contribution to dividend growth, accounting for almost two-fifths of the underlying increase.

Globally, soaring energy prices fuelled a significant increase in dividends during the quarter, as oil companies distributed record profits to shareholders. The global total paid rose by 7.0% on a headline basis to $415.9bn, easily a record for the third quarter. The underlying increase was 10.3% once the strength of the dollar and other factors were taken into account. Globally, 90% of companies raised dividends or held them steady, slightly below the 94% recorded in the first half of the year.

Surging oil dividends offset a slump in mining payouts

Oil companies all over the world hiked their payouts, largely via special dividends rather than an increase in their regular payments. Oil dividends were particularly strong in emerging markets, Asia and North America with the biggest increase coming from Petrobras in Brazil.

Upgraded forecast

The encouraging third quarter has prompted a $30bn upgrade in Janus Henderson’s full-year headline figures, driven mainly by higher one-off special dividends, strength in the oil sector and in Asia. Janus Henderson now expects headline dividends of $1.56 trillion¹, up 8.3% year-on-year. Underlying growth is set to be 8.9%, an increase of 0.4 percentage points compared to Janus Henderson’s expectations three months ago and still firmly ahead of the 5-6% longer-term dividend growth trend.

Matt Peron, Director of Research at Janus Henderson said: “Given the challenges facing investors in 2022, record high dividend payments are a rare silver lining for those who rotated assets into dividend paying stocks in defensive sectors. Looking ahead to 2023, slower economic growth is likely to impact dividend payments globally. However, in the US, dividend payments tend to rise and fall far less than other parts of the world, as demonstrated during the depths of the COVID-19 lockdowns, which is welcome news for income investors.”

Notes to editors

Our headline growth rate describes the change in the total dollar amount paid by companies compared to the corresponding quarter each year. Our underlying figure adjusts for the distortion that can be caused by one-off special dividends, changing exchange rates, the effect of companies entering and leaving the global top 1,200 that comprise our index and the impact of changes in payment dates. The latter two tend to be negligible over the course of a whole year at the global level, though they can have a greater impact in any one quarter, geography or sector.

About Janus Henderson

Janus Henderson Group is a leading global active asset manager dedicated to helping investors achieve long-term financial goals through a broad range of investment solutions, including equities, fixed income, multi-asset, and alternative asset class strategies.

At 30 September 2022, Janus Henderson had approximately US$275 billion in assets under management, more than 2,000 employees, and offices in 23 cities worldwide. Headquartered in London, the company is listed on the NYSE and the ASX.

Source: Janus Henderson Group plc

This press release is solely for the use of members of the media and should not be relied upon by personal investors, financial advisers or institutional investors. We may record telephone calls for our mutual protection, to improve customer service and for regulatory record keeping purposes. All opinions and estimates in this information are subject to change without notice

Issued by Janus Henderson Investors. Janus Henderson Investors is the name under which investment products and services are provided by Janus Henderson Investors International Limited (reg no. 3594615), Janus Henderson Investors UK Limited (reg. no. 906355), Janus Henderson Fund Management UK Limited (reg. no. 2678531), Henderson Equity Partners Limited (reg. no.2606646), (each registered in England and Wales at 201 Bishopsgate, London EC2M 3AE and regulated by the Financial Conduct Authority) and Janus Henderson Investors Europe S.A. (reg no. B22848 at 2 Rue de Bitbourg, L-1273, Luxembourg and regulated by the Commission de Surveillance du Secteur Financier). Henderson Secretarial Services Limited (incorporated and registered in England and Wales, registered no. 1471624, registered office 201 Bishopsgate, London EC2M 3AE) is the name under which company secretarial services are provided. All these companies are wholly owned subsidiaries of Janus Henderson Group plc. (incorporated and registered in Jersey, registered no. 101484, with registered office at 13 Castle Street, St Helier, Jersey, JE1 1ES). Janus Henderson Investors (Australia) Limited ABN 47 124 279 518 is not under any obligation to update this information to the extent that it is or becomes out of date or incorrect.

Janus Henderson, Knowledge Shared and Knowledge Labs are trademarks of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc.

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¹ Janus Henderson has removed all Russian companies from the index and restated all historic data. Russian companies have only contributed 1.5% to global payouts over the last decade consequently the long-term impact is small.

View source version on businesswire.com: https://www.businesswire.com/news/home/20221116005278/en/

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Janus Henderson Global Dividend Index: Boosted by Financials, US Dividends Surge to Record High

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