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Update

Recent figures from the Janus Henderson Global Dividend Index showed global dividends reaching a record high in the second quarter of 2022, surpassing pre-pandemic levels.

Quarterly dividends reached a record $544.8bn in Q2, up 11.3% from Q1. Europe and the UK were also key drivers of dividend growth, with dividends rising 28.7% and 29.3% respectively on an underlying basis.

Underlying growth was even stronger, showing 19.1% growth once the strength of the dollar and other factors were considered. The Index showed that 94% of firms either raised payouts or held them steady in Q2. A strong recovery from the pandemic left funds sitting just 2.3% below the long-term trend.

Janus Henderson predicted that dividend payouts in 2022 will total $1.56tn. However, the firm noted that the second half of the year would see growth headwinds in the form of rising inflation.

Dividend growth in the U.S. lagged the global pattern at 8.3%. However, the increase still led to a new U.S. dividend record. New quarterly records were also set in Canada, Switzerland, and the Netherlands.

The two key players in the growth worldwide were oil and financials, which each contributed two-fifths to second-quarter growth. Janus Henderson noted that oil firms in Brazil and Colombia stood out strongly. Meanwhile, consumer discretionary sectors, car manufacturers in particular, also delivered strong dividend growth.