Dividends from European companies grew at their slowest rate for ten years while global dividends as a whole reached a record-breaking $263.3 billion (€235.9 billion) during the first quarter of the year.
Europe ex-UK dividends saw their slowest growth since 2009, increasing at one third of the pace of the rest of the world. Pay-outs in the region reached $40 billion (€35.7 billion), up from $36.6 billion in the first quarter last year.
Globally, the increase in dividend payments was of 7.8% on a headline basis, according to figures from the latest Janus Henderson global dividend index. Dividends in the first quarter were twice as high as they were in 2009, when the index was launched, making it a record for the period.
The index showed a wide divergence between countries. Dividends in Spain, Portugal, and Italy were lower than they were ten years ago, while the Netherlands, Denmark, Belgium, and Switzerland saw pay-outs more than double.
In the UK, dividends increased at just over half the rate of the rest of the world since the launch of the index, only slightly outpacing the rest of Europe.
“This reflects the sector concentration in the UK (with a heavy reliance on slower growth oil and banking stocks), and higher pay-out ratios that provide less room for expansion,” according to Janus Henderson.
The overall total paid out to UK shareholders during the first quarter was $20.7 billion, compared to $18.7 billion in the same period last year. A large special dividend from BHP, the mining and petroleum company, boosted the number.
In the US and Canada, pay-outs broke all-time quarterly records. Growth in North America was the fastest worldwide, according to the index.
US dividends totalled $122.5 billion, up 8.3% on a headline basis, with underlying growth of 9.6%. In Canada, dividends reached a record $10.7 billion despite a weaker exchange rate holding back headline growth.
Asia Pacific ex-Japan saw a first-quarter total of US$18.1 billion in dividends, while dividends in Japan came to $5.5 billion, up from $5.2 billion in the same period last year.
“Dividend growth has made a strong start in 2019. This reflects a continuation of the robust growth witnessed in 2018, rather than necessarily setting the tone for another above-trend year in 2019,” said Ben Lofthouse, head of global equity income at Janus Henderson.
The pharmaceutical industry was the biggest dividend payer in the first quarter, contributing $1 to every $8 paid out globally.
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