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.

Key Takeaways

• Global dividends jumped by 11% to a total of US$302.5 billion in the first quarter of 2022 – a record for the seasonally quieter first three months of the year.
• Every region in our index saw double-digit growth in dividends and every sector posted increases, with particular strength seen in oil and mining. At the country level, the US, Canada and Denmark broke all-time quarterly records.
• We are maintaining our expectations for the remaining quarters of the year given the uncertain global economic outlook and rising geopolitical risks. However, the inclusion of the robust Q1 numbers increases our forecast slightly for 2022.

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Jane Shoemake: Global dividends had a strong start to 2022, recording first quarter growth of 11%, with payments of over US$300 billion, a record for what is commonly a seasonally quieter period.

One of the main drivers is the ongoing normalisation of payouts following the disruption caused by the pandemic. While growth was seen on a very broad basis across different sectors and geographies, the US, 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 US$1.4 trillion, 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.

All dollar figures are in US dollars (USD).