Global dividend payouts get a boost in the US

While US divided growth benefited from a one off $9.8bn special payout from Kraft due to its merger with Heinz, removing this outlier would still allow for strong US growth figures

US-economy

Strong economic data from the US sees the growth of global dividends increase, although not evenly across globe

A strong third quarter in the US economy has seen global dividend payouts increase. Increased growth, alongside strong consumer confidence among Americans saw the amount paid out to share holders increase 2.3 percent, a grand total of $297bn, according to a survey by Henderson Global Investors,.

Collectively, dividend payouts in North America were up 20 percent on
the year

Collectively, dividend payouts in North America were up 20 percent on the year, reaching a quarterly record of $116.5bn. Between the two major economies of the region – Canada and the US – the latter saw the biggest boost. The US saw payouts rocket up by 23.4 percent to $107.9bn, which constitutes its seventh quarter of double-digit increases.

While US divided growth benefited from a one off $9.8bn special payout from Kraft due to its merger with Heinz, removing this outlier would still allow for strong US growth figures. “The US is far ahead of the curve, propelling dividends forward at breakneck speed,” said Alex Crooke, head of global equity income at Henderson.

All is not well in the world of dividends, however. China has held global dividend payout growth back with a seemingly poor performance. Growth of dividends from emerging markets distinctly lagged behind. China in particular, addled by slowing economic growth, saw disappointing results. According to the report China is “on course for the first ever decline in Chinese dividends.”

The poor figures from China have, according Crooke, “come sooner than we expected. Payouts from Chinese companies have nearly tripled in six years, but a fall in the country’s total payout is likely in 2015 for the first time’’.

 

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