The latest figures reveal that 86% of all listed companies either maintained or increased their dividends in 2023. This resulted in a record dividend payout of $1.66 trillion (A$2.5 trillion) last year, up from $1.57 trillion ($2.38 trillion). Australian) paid in 2022.
The data comes from the Janus Henderson Global Dividend Index (JHGDI) report, which is released on a quarterly basis. It confirmed that Microsoft (MSFT) paid the most important dividends in 2023. Apple (APPL) and Exxon Mobil (XOM) followed the technology giant on the list.
Ben Lofthouse, head of global equity income at Janus Henderson, said strong cash flow in the majority of sectors “provided a lot of strength for dividends and share buybacks.”
Banks account for a large proportion of profits, with a record $220 billion (A$333 billion) coming from the sector in 2023. This represents a 15% increase on 2022 as higher interest rates helped banks achieve better profits. However, mining companies such as Rio Tinto (RIO) and BHP (BHP) have suffered as falling commodity prices have forced them to cut their dividends sharply.
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Consumer goods company Reckitt Benckiser (RKT) is among the companies that have boosted earnings this year. The company’s profits rose from $2.32 (A$3.5) to $2.47 (A$3.73). This includes a proposed final dividend of US$1.48 (A$2.24), which is an increase from 2022’s US$1.42 (A$2.14).
The current forecast from Janus Henderson is for a 5% growth rate in corporate profits in 2024, which could lead to payouts totaling $1.72 trillion this year, if true.