(Reuters) – Global dividend payments hit a record $1.66 trillion (€1.516 billion) in 2023, an increase of 5% driven notably by banks, which contributed half of that growth, shows a report by Janus Henderson published Wednesday.
According to the study, 86% of companies worldwide increased or maintained their dividends in 2023. The fourth quarter was particularly strong, with growth of 7.2% fueled in particular by Europe, the United Kingdom and Japan.
The banking sector, including emerging markets, accounted for half of global dividend growth as rising interest rates allowed many banks to expand their margins.
Chinese banks, however, were in decline, as the world’s second-largest economy recorded a sharp slowdown.
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Europe, excluding the UK, accounts for two-fifths of the global increase.
French companies, meanwhile, paid a record €63.2 billion to their shareholders in 2023, and 97% of them increased or maintained their dividends, which is significantly higher than the European average and global, even surpassing the United States, specifies the study.
“Unlike other European countries, it is not the banks which have contributed the most to the growth of dividend payments in France, but rather several sectors such as consumer goods or even industry, as well as a few companies like Engie , which paid its largest dividend in ten years”, notes Charles-Henri Herrmann, director of development France & Distribution BeNeLux at Janus Henderson.
The positive impact of dividends paid by the banking sector was overshadowed by cuts in the mining sector, where profits fell due to falling commodity prices, the report said.
For 2024, Janus Henderson says it expects dividends of $1.72 trillion and growth similar to 2023, although a likely drop in special dividends could reduce the overall growth rate.
(Written by Diana Mandiá, edited by Claude Chendjou)
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