A new record was set in the first quarter of this year, when dividends distributed worldwide exceeded the astronomical total of $326 billion. Good performance fueled by best practices in the automotive industry.
The automotive industry, the engine of record growth
According to a recently published study, total dividends distributed in the first quarter increased by 12% compared to the previous year, reaching a record level. Exceptional payments from car groups contributed significantly to this increase.
Producers weigh in on this financial windfall
A report by asset manager Janus Henderson reveals that exceptional dividend payments reached $28.8 billion in the first quarter, their second highest level on record, behind the first quarter of 2014. Automakers Ford and Volkswagen accounted for nearly a third of these exceptional payments. . The dividend paid by the automobile sector was therefore ten times higher than the previous year.
Volkswagen made headlines in the first quarter by paying an extraordinary $6.3 billion in dividends, an amount that was made possible by Porsche’s IPO late last year.
The stability of the dividend market despite the instability of the world economy
The dividend increase is particularly impressive given the turbulent global economic environment of 2022, with high inflation, rising interest rates, conflicts and continued restrictions due to COVID-19, according to Ben Lofthouse, head of the global equity team at Janus Henderson.
Different global performance
However, not all countries participated equally in this record. In France, for example, luxury groups Hermès and Kering were the main contributors to dividend growth, amounting to 2.8 billion euros, out of a total of 3 billion dollars paid by companies. French.
The prize for the most generous dividend distributor in the first quarter goes to the Danish shipping group Moller Maersk, which paid out $11.7 billion, more than half in the form of an extraordinary dividend, reflecting a net profit recorded in 2022. thanks to rising container prices baggage.
Stupid predictions for 2023
For the full year 2023, Janus Henderson has revised his forecast upwards. According to the asset manager, global dividends are expected to reach $1.64 trillion, which would equate to overall growth of 5.2%. Meanwhile, share buybacks, another way to pay shareholders, also reached a record in 2022.
This dividend trend shows the strength of certain industries and their ability to bring great returns to their shareholders, despite the turmoil in the global economy.