According to a report by asset manager Janus Henderson that lists the 1,200 largest market caps, 88% of companies increased or maintained their dividends in 2022.
Companies have “again been generous” to their shareholders by paying them $ 1.560 billion in dividends in 2022, a new record set in part thanks to oil and gas companies, before a promising year 2023, according to a study published on Wednesday.
The total amount donated is up 8.4% compared to 2021, the previous record year thanks to the rebound of the global economy after the Covid-19 health crisis, according to a report by asset manager Janus Henderson which identifies the 1200 largest market capitalizations.
Oil and gas producers and financial companies accounted for half of that growth, according to the manager’s Global Dividend Index.
Thanks to oil and gas companies
Due to soaring energy prices which have inflated their profits, oil and gas producers have “increased their distributions by more than 66%, in the form of ordinary or extraordinary dividends”, specifies the asset manager .
Banks continued to benefit from the reauthorization of dividends, after they were frozen by the European Central Bank at the start of the pandemic: they contributed a quarter of the rise last year.
The maritime transport sector benefited from the increase in freight, the automobile sector from the increase in car prices and the luxury sector from the continuous increase in demand. These last two sectors are the “engine” of dividends in Europe.
In 2021, mining companies had been in the spotlight, with four companies in the top 10 entities having paid the most dividends. The year 2022 has seen the price of commodities drop slightly, causing their dividends to decline.
Towards a new record in 2023
Huge corporate profits and dividends paid out in 2022, as the global economy falters and inflation stifles purchasing power, has reignited the debate over taxing windfall “superprofits”.
“As for the year ahead, the dividend outlook is more uncertain,” said Jane Shoemake, portfolio manager, quoted in the press release.
The asset manager is still counting on a new record of 1.6 trillion dollars in dividends distributed, representing slower growth of 2.3%.
“Inflation, the scale of further rate hikes and geopolitical risks are clouding the horizon,” adds Jane Shoemake.
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