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The latest edition of the Janus Henderson Global Dividend Index shows that global dividends surged 11% during the first quarter of 2022. Client Portfolio Manager Jane Shoemake discusses the factors that led to the growth and outlines our expectations for the rest of the year.
Jane Shoemake: Global dividends had a strong start to 2022, recording first quarter growth of 11%, with payments of over $300 billion, a record for what is commonly a seasonally quieter period.
One of the main drivers is the ongoing normalization of payouts following the disruption caused by the pandemic. While growth was seen on a very broad basis across different sectors and geographies, the U.S., Canada and Denmark were especially notable, setting all-time quarterly records. Meanwhile, parts of Asia, such as Hong Kong, were weaker, with lockdowns continuing to plague economies.
Looking ahead, we are not changing our expectations for the remainder of the year, despite the strong first quarter, and continue to expect payments to reach $1.4 trillion USD, an increase of around 5%. We’re not changing the forecasts because the world’s economy faces a number of challenges – the war in Ukraine, increased geopolitical tensions, high energy and commodity prices, rapid inflation, and a rising interest rate environment – all of which will have an impact on company profits as the year progresses.