Microsoft and Oracle Contributed One-Fifth
of the Rise
- US dividends increased 4.5% on an underlying basis1 in the
third quarter of 2023, with Utilities companies serving as a
significant driver of growth year-over-year.
- Microsoft and Oracle contributed one fifth of the $3bn increase
in US dividend payments during the quarter, and the restoration of
payouts from Southwest Airlines, Las Vegas Sands and Delta Airlines
after pandemic-induced interruptions contributed another
seventh.
- 98% of US companies increased dividend payouts or kept them
flat year-over-year.
- Globally, dividends fell 0.9% to $421.9bn during the quarter,
but underlying growth was 0.3%.
- Underlying global growth forecast for 2023 increased from 5.0%
to 5.3%, but lower one-off special dividends and exchange rate
effects mean a slight reduction in headline forecast from $1.64 to
$1.63 trillion, +4.4% year-over-year.
US dividend payments increased 4.5% on an
underlying basis during the third quarter of 2023, according to the
latest Janus Henderson Global Dividend Index. On a headline basis,
which includes special dividends, exchange rate effects and other
technical factors, dividends in North America climbed 0.3% to
$161.9bn during the quarter. This marks the eighth consecutive
quarter of slowing US dividend growth, however, 98% of US companies
raised their payouts or held them steady.
Technology companies were a key driver of growth in Q3,
highlighted by sizeable payments made by Microsoft and Oracle.
Utilities companies also contributed to the expansion with
NextEraEnergy delivering the largest increase. The biggest cut came
from Blackstone, which has been reducing its payout all year as
profits from private equity investment come under pressure.
Globally, dividends fell slightly in the third quarter, down
0.9% on a headline basis to $421.9bn. Underlying growth was 0.3%,
but large cuts from a handful of companies masked much more
encouraging growth around the world.
A few large cuts impacted the figures – excluding the two
largest underlying growth was 5.3%
The largest dividend falls came from across the mining sector,
where half of companies reduced payouts, and from oil producers in
Brazil and Taiwan, against the wider oil-sector trend. Indeed,
stripping out just the two biggest cutters, Brazil’s Petrobras and
Australian miner BHP, both of which are known for their variable
dividends, reveals 5.3% global underlying growth in Q3 - in line
with the long-term trend. Dividends from chemicals and Asian real
estate companies were also down sharply, reflecting tough market
conditions in the region.
Banking, utilities, vehicles as well as most oil companies,
showed strong growth
These cuts were offset by strong banking dividends in most parts
of the world (up 9.3% underlying), and by rising payouts across a
wide range of other sectors, especially utilities and vehicle
manufacturers.
Forecast – underlying growth upgraded; headline growth
trimmed back a touch
Janus Henderson’s forecast for this year has reduced slightly,
reflecting lower special dividends and the strengthening dollar.
The 2023 headline forecast drops from $1.64 trillion to $1.63
trillion, an increase of 4.4% year-on-year. But underlying growth,
which is unaffected by exchange rates and one-off special
dividends, is stronger than expected. Moreover, several countries,
including the US, France, Canada, Switzerland and China are on
track to deliver record payouts. The global fund manager is
therefore upgrading its forecast for underlying growth from 5.0% to
5.3%.
Ben Lofthouse, head of global equity income at Janus
Henderson said: “Apparent weakness in Q3’s global dividends is
not a cause for concern, given the large impact a handful of
companies made. In fact, the level of growth and its quality look
better this year than seemed likely a few months ago as payouts
have become less reliant on one-offs and volatile exchange
rates.
“Dividend growth from companies generally remains strong across
a wide range of sectors and regions, with the exception of
commodity related sectors like mining and chemicals. It is quite
normal and well understood by investors that commodity dividends
will rise and fall with the cycle, however, and does not indicate
wider malaise. Moreover, our figures show that a globally
diversified income portfolio has natural stabilisers – sectors in
the ascendance, such as banking and oil, have been able to
counteract those with declining dividends, like mining and
chemicals. And of course, dividends are typically much less
volatile than earnings over time, providing comfort in times of
economic uncertainty.”
Notes to editors
Our headline growth rate describes the change in the total
dollar amount paid by companies compared to the corresponding
quarter each year. Our underlying figure adjusts for the distortion
that can be caused by one-off special dividends, changing exchange
rates, the effect of companies entering and leaving the global top
1,200 that comprise our index and the impact of changes in payment
dates. The latter two tend to be negligible over the course of a
whole year at the global level, though they can have a greater
impact in any one quarter, geography or sector.
About Janus Henderson
Janus Henderson Group is a leading global active asset manager
dedicated to helping clients define and achieve superior financial
outcomes through differentiated insights, disciplined investments,
and world-class service.
As of September 30, 2023, Janus Henderson had approximately
US$308.3 billion in assets under management, more than 2,000
employees, and offices in 24 cities worldwide. Headquartered in
London, the company is listed on the NYSE and ASX.
[1] Underlying figures adjust for lower special dividends,
exchange rates and minor technical factors
This press release is solely for the use of members of the
media and should not be relied upon by personal investors,
financial advisers or institutional investors. We may record
telephone calls for our mutual protection, to improve customer
service and for regulatory record keeping purposes. All opinions
and estimates in this information are subject to change without
notice.
Issued by Janus Henderson Investors. Janus Henderson Investors
is the name under which investment products and services are
provided by Janus Henderson Investors International Limited (reg
no. 3594615), Janus Henderson Investors UK Limited (reg. no.
906355), Janus Henderson Fund Management UK Limited (reg. no.
2678531), (each registered in England and Wales at 201 Bishopsgate,
London EC2M 3AE and regulated by the Financial Conduct Authority)
and Janus Henderson Investors Europe S.A. (reg no. B22848 at 2 Rue
de Bitbourg, L-1273, Luxembourg and regulated by the Commission de
Surveillance du Secteur Financier). Henderson Secretarial Services
Limited (incorporated and registered in England and Wales,
registered no. 1471624, registered office 201 Bishopsgate, London
EC2M 3AE) is the name under which company secretarial services are
provided. All these companies are wholly owned subsidiaries of
Janus Henderson Group plc. (incorporated and registered in Jersey,
registered no. 101484, with registered office at 13 Castle Street,
St Helier, Jersey, JE1 1ES). Janus Henderson Investors (Australia)
Limited ABN 47 124 279 518 is not under any obligation to update
this information to the extent that it is or becomes out of date or
incorrect. U.S. by SEC registered investment advisers that are
subsidiaries of Janus Henderson Group plc; Canada through Janus
Henderson Investors US LLC only to institutional investors in
certain jurisdictions.
Janus Henderson and Knowledge Shared are trademarks of Janus
Henderson Group plc or one of its subsidiaries. © Janus Henderson
Group plc.
There is no guarantee that past trends will continue, or
forecasts will be realised. References made to individual
securities do not constitute a recommendation to buy, sell or hold
any security, investment strategy or market sector, and should not
be assumed to be profitable. Janus Henderson Investors, its
affiliated advisor, or its employees, may have a position in the
securities mentioned.
View source
version on businesswire.com: https://www.businesswire.com/news/home/20231115858543/en/
Press Inquiries
Janus Henderson Investors Candice Sun
Candice.Sun@janushenderson.com
Sarah Johnson Sarah.Johnson@janushenderson.com
Janus Henderson (NYSE:JHG)
Historical Stock Chart
Von Apr 2024 bis Mai 2024
Janus Henderson (NYSE:JHG)
Historical Stock Chart
Von Mai 2023 bis Mai 2024