Global Stock Dividends Rise 13% to Record High $497-B
Global stock dividend payouts have risen 13% in the three months to the end of June, hitting a new record high of $497 billion, according to the Janus Henderson Global Dividend Index.
Dividends rose across the globe, with record breaking payouts in France, Germany, Switzerland, the Netherlands, Belgium, Denmark, Ireland, Japan, and the United States.
US companies paid $117.1-B in dividends in the 3 months to the end of June, up 4.5% on the prior year.
According to the Dividend Index, the US is the most steady market for income investors, with dividend pay-outs rising every Quarter over the past 10 yrs but 4. High profile dividend cuts included General Electric (NYSE:GE) who slashed their payout by 50%.
The head of global equity income at Janus Henderson said: “The second quarter exceeded our expectations in every region of the globe, and income investors will be cheering record payouts and strong growth, with the potential for more to come. Even in out-of-favor regions, such as Europe, dividends continue to increase, driven by ongoing economic and earnings growth.”
Forecasts for global dividends are less positive, trade tariffs loom large on the horizon.
“Escalating tariff battles with the US could have a negative impact on corporate profitability.
Though its magnitude is highly uncertain at present.”
To be sure, dividends are always a main focus of investors’ attention.
Editors Note: For the past 8 years, it has been a super time to buy and hold dividend paying stocks.
The Big Q: Why?
The Big A: They have been the best all around. With interest rates so close to Aero, investors have had a choice between low-yielding bonds or moderate-yielding stocks with the probability of some share price growth, as long as participants do not try to time stocks day to day, that is for the professional on the trading desks.
Over the past few years, dividend payouts have soared, along with share buybacks as well. In fact, during the last 2 years, the total dividend and buyback payout has exceeded the total profits made by corporate America on average.
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