Last year, a record global dividend payout of $1.56 trillion was reported, announced by Janus Henderson Group, a British-American global asset management group based in the City of London, which publishes the Global Dividend Report annually. The highest growth in dividend payouts was recorded by companies in fast-growing markets at 13.1%, followed by Europe (excluding the United Kingdom) at 11.2%, and North America with a growth of 10.2%.
According to data from their report, dividends increased by 8.4% last year, primarily due to the strong rise of the dollar against other currencies, as well as rising oil and gas prices. Indeed, these prices boosted profits for oil and gas producers, who consequently increased dividend payouts to their shareholders. Significant profit growth was also seen in financial companies in the US, the UK, and Europe, contributing to the rise in global dividends. Additionally, leading global transportation companies experienced noticeable revenue and profit growth, making it logical that their shareholders are now reaping the rewards.
Records in Europe
According to analysts at Janus Henderson, a record $254.7 billion worth of dividends was paid out in Europe last year. The normalization of business after the pandemic and increasing demand, along with rising prices for cars and luxury goods, were the drivers of dividend growth in Europe.
The European financial sector, especially banks, also had quite good dividends, with even one-fifth of payouts related to the transportation business. The Danish giant Moller Maersk had record delivery and transportation prices during the past period. Companies involved in oil production and processing also recorded growth, but their contribution in percentage terms is relatively small for that region.
