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Record-breaking quarter for share market dividends

Janus Henderson, dividends, investing, equity markets, share markets, Alex Crooke

The second quarter of 2017 has been very generous to investors, with global dividends reaching an all-time quarterly record of $447.5 billion according to a global asset management firm.

Janus Henderson Investors’ Global Dividend Index found that dividends grew 7.2 per cent year-on-year, the fastest growth the world has seen since 2015, with the US, Japan, Switzerland, the Netherlands, Belgium, Indonesia and South Korea all breaking domestic records.

Europe was the best region for dividend growth, with 86 per cent of European companies raising or holding their dividend payouts, with the largest increases coming from smaller European countries.

Australian growth however was relatively small at only 1 per cent, but Janus Henderson noted that this was due to the payouts of a small number of companies affecting the overall total.

“The second quarter is seasonally small in Australia, meaning one or two stocks can affect the overall figures significantly,” the company said.

“Underlying growth in Australia was only 1.0 per cent, as an increase from Rio Tinto was offset by a second consecutive cut from Woolworths due to disappointing profits, while neither Commonwealth Bank nor Telstra, which dominate the quarter, increased payouts.”

Regardless, Alex Crooke, who leads Janus Henderson’s global equity income team, said the current market environment looks good and the positive dividend growth is likely to continue in to the second half of the year.

“The global economy is very supportive for company profits and dividends at present, and helped drive record payouts in many countries around the world,” he said.

“The first half of 2017 has been stronger than we expected, and the second half is looking promising too.”

Record-breaking quarter for share market dividends
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