Global dividends rose 3.1%, on both an underlying and headline basis, to $431.1bn in Q3 2024: a record for a third quarter.
According to the latest Janus Henderson Global Dividend Index, nine companies in ten (88%) increased their dividends or held them flat.
The report found that strong dividend growth was obscured by significant cuts and lower special dividend payments
“The dividend growth rate appeared relatively muted in comparison to recent quarters, driven largely by the significant cuts made by just five companies which obscured much stronger growth across the broader market; their cuts alone impacted the global growth rate by 3.5%,” the report concluded.
Two of the five companies – Evergreen Marine in Taiwan and Glencore in the UK – impacted the Q3 growth rate by 3.4% between them.
Without these cuts, global growth would have been more than twice as fast, at 6.5%, consistent with the first half of the year and the expected outcome for the whole year. Unusually low levels of one-off special dividend payments also made an impact, holding back the headline growth rate by more than expected in the third quarter.
Andrew Jones, Portfolio Manager on the Global Equity Income Team, said: “UK dividends have continued to reflect sector-specific challenges in Q3, with underlying growth dampened by reductions among major commodity firms.
“However, it was encouraging to see that the broader UK market remained steady, with a majority of companies maintaining or modestly increasing their payouts. Looking ahead, we continue to anticipate a stable landscape for UK dividends as companies respond to an improving economic climate.”
