Global dividends leap to record $427bn

clock • 1 min read

Global dividends jumped 11.7% year-on-year in the second quarter of 2014, according to Henderson's global dividend index.

Overall payments grew $44.6bn to $426.8bn, a new record. Excluding special dividends, payments grew by 10.2% year on year.

Europe and Japan saw the best growth, with payments up roughly a fifth in each region, while US payments surged 13.8%. European companies typically pay the bulk of dividends in the second quarter.

However, emerging markets dividends dropped 14.6%, the fall exacerbated by index changes and lower exchange rates.

It is especially encouraging to see Europe and Japan delivering big increases to their shareholders

hendo2Henderson global equity income head Alex Crooke said 2014 is likely to deliver the fastest growth in global dividends for three years: "This time, most of that growth will come from increases in payouts from firms themselves, rather than from swings in currencies. In 2011, more than a third of the growth came from a falling US dollar.

"Developed markets are leading the charge, and we expect that to continue. It is especially encouraging to see Europe and Japan delivering big increases to their shareholders, after lagging behind the rest of the world recently."

hendo1Source: Henderson Global Investors

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