Dividends continue to outpace profit growth in 2022 and 2023

Henderson International Income trust

Dividends grew four times faster than profits throughout 2022, while they are predicted to reach 5.1% this year against flat profits.

Globally, dividends and share buybacks totalled £2.9trn throughout 2022, as dividends rose by 20.1% to £1.26trn and share buybacks jumped by a third, according to the annual Dividend Cover report from the Henderson International Income trust. While profits hit record levels of 5.8% (£3.1trn) in 2022, 49% higher than pre-pandemic levels, they rose much slower than dividends did. AJ Bell: 2023 'on track' to be third best year for cash returns from FTSE 100 Although the profit cover of dividends and share buybacks has declined from the highs of 2021, from 1.58x to 1.33x, profits remai...