mast image

Special Report

Impact investing

Sections

European dividend payments break records in Q2

Related Categories

Listed companies paid a record $497.4bn (€435.1bn) in dividends in the second quarter of this year, according to Janus Henderson Investors.

The asset manager’s Global Dividend Index reported record dividend totals in 12 countries in the period, including for France, Japan and the US. European companies outside the UK paid a record $176.5bn.

Year-on-year growth was 12.9% in dollar terms, the company said. Although currency “exaggerated the headline performance”, Janus Henderson reported underlying growth of 9.5% – the index’s fastest increase in three years. 

Ben Lofthouse, head of global equity income at Janus Henderson, said the growth was mostly due to “ongoing economic and earnings growth”. 

<

He added that, despite trade tensions between governments and regions, “we are still optimistic that in aggregate corporate earnings can continue to grow next year, and payout ratios in key parts of the world like Japan have scope to rise further too”.

“Dividends in any case are less volatile than profits, and we are confident that 2019 will see the global total continue to rise in underlying terms,” Lofthouse said. “The trajectory of the dollar may affect the headline growth rate next year, but exchange-rate fluctuations have little impact over the longer term.”

Within Europe, total dividend payouts hit record levels in France, Germany, Switzerland, the Netherlands, Belgium, Denmark and Ireland, Janus Henderson said.

The company said it expected underlying total dividend payments to increase by 7.4% in 2018, compared with 2017’s total. In dollar terms the company did not change its forecast for the year, however, as the strengthening dollar was expected to offset this improvement.

Janus Henderson estimated that $1.36trn would be paid out in 2018.

According to consultancy group Mercer’s latest European Asset Allocation Survey, European defined benefit pension schemes allocated an average 28% of their portfolios to equities. This ranged from 10% in Denmark to 45% in Belgium.

Global Dividend Monitor 2014-18

Source: Janus Henderson Investors

Related images

  • Euros

Have your say

You must sign in to make a comment

IPE QUEST

Your first step in manager selection...

IPE Quest is a manager search facility that connects institutional investors and asset managers.

  • QN-2548

    Asset class: Fixed Income, Emerging Market Debt Hard Currency (Active).
    Asset region: Emerging Markets.
    Size: CHF 300-400m.
    Closing date: 2019-07-30.

  • QN-2549

    Asset class: Fixed Income, Emerging Market Debt Hard Currency (Passive or Passive Enhanced).
    Asset region: Emerging Markets.
    Size: CHF 300-700m.
    Closing date: 2019-07-30.

  • QN-2550

    Asset class: Fixed Income, Emerging Market Debt Local Currency (Active).
    Asset region: Emerging Markets.
    Size: CHF 250-350m.
    Closing date: 2019-07-31.

  • QN-2551

    Asset class: Fixed Income, Emerging Market Debt Local Currency (Passive or Passive Enhanced).
    Asset region: Emerging Markets.
    Size: CHF 250-350m.
    Closing date: 2019-07-31.

  • QN-2552

    Asset class: Fixed Income, High Yield (Active).
    Asset region: High Yield (US).
    Size: CHF 500-600m.
    Closing date: 2019-07-29.

  • QN-2553

    Asset class: Fixed Income, High Yield (Passive or Passive Enhanced).
    Asset region: High Yield (US).
    Size: CHF 500-1'100m.
    Closing date: 2019-07-29.

  • QN-2554

    Asset class: Global Real Estate (Equity, unlisted Funds).
    Asset region: World (ex-Switzerland).
    Size: CHF 200 mn (potential for further growth).
    Closing date: 2019-08-07.

  • QN-2555

    Asset class: Real Estate.
    Asset region: European.
    Size: EUR 50 - 100 million.
    Closing date: 2019-07-22.

  • QN-2556

    Asset class: FX Hedging.
    Asset region: Global.
    Size: Mandate size of CHF 1.5 bn.
    Closing date: 2019-08-09.

  • QN-2557

    Asset class: All/large Cap Equities.
    Asset region: China A-shares.
    Size: Unit linked platform (0m USD in initial investment).
    Closing date: 2019-08-01.

Begin Your Search Here
<