THE WORLD’S largest companies increased their dividends by 14.5 per cent in the third quarter, with generous special dividends helping make that the highest growth rate achieved in the last three years.
Research from fund manager Janus Henderson found that the top 1,200 companies by stock market capitalisation paid out $328.1 billion in the three months to the end of September, with every region in the world recording growth.
While Hong Kong, Australia, and Taiwan all posted record-breaking increases, the UK was the strongest performing market overall.
In total the UK’s largest companies paid out $29.6bn, which was 12.7 per cent higher than in the same period last year and was boosted by a large special dividend from contract caterer Compass Group.
When adjusted for exchange rate movements, one-off special dividends and the removal of SAB Miller, which was acquired by AB-InBev, the UK growth rate for the quarter was 17.5 per cent.
According to the Janus Henderson report, the figure was boosted by an apparent halt in the decline of the pound, which had proved a drag on headline growth in last year’s figures.
On a global view, Janus Henderson global equity income fund manager Ben Lofthouse said investors in all regions are benefiting from a general improvement in fundamentals.
“As the global economy continues its long-awaited post-crisis normalisation, confidence is improving, and company profits are rising,” Mr Lofthouse commented.
“Income investors are enjoying the benefits of this growth, as it feeds through into higher dividends.
“After record second and third quarters, the world’s listed companies are comfortably on course to deliver the highest ever annual total this year.”
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