2023-08-30 03:43:37
Shareholders do not seem affected by the global economic slowdown. The largest companies in the world indeed paid more than 560 billion dollars in dividends in the second quarter, a record over this period, with an even more accentuated trend in France.
Between April and June, the 1,200 largest listed companies, identified by asset manager Janus Henderson, redistributed $568.1 billion in dividends to their shareholders. This growth of 4.9% compared to the same period of 2022 “exceeds” even slightly the “optimistic expectations” of the company.
Spain at the top of the table
In Europe, where two-thirds of the dividends are realized during these three months because many companies choose to pay the entire annual dividend at once, the increase was 9.7%. In France, which accounted for nearly 30% of dividends in Europe, the trend was even more marked with an increase of 13.3%, ahead of other major economies such as Germany (+9.6%), l Italy (+9.4%), but less than Spain (+32.7%).
Janus Henderson estimates the amount of dividends in France at 49.5 billion dollars (regarding 46 billion euros), a record. BNP Paribas, Sanofi, Axa, LVMH and Engie, whose dividends rose by two-thirds, were the main redistributors in the second quarter, and are all in the top 20 worldwide.
Dividends, which allow companies to redistribute part of their profits to their shareholders, follow the profit trend of the main French multinationals: in 2022, CAC40 companies generated more than 142 billion euros in profits thanks to world records. luxury and energy. Companies can also redistribute money to their shareholders in the form of share buybacks, a practice that is gaining momentum in Europe.
The rise should continue
Banks were “the main driver” of dividend growth, both in Europe and globally, followed by automotive in Europe. The global asset management group Janus Henderson expects above all “that the rise in dividends will continue (…). One of the reassuring characteristics of dividend income is that it is typically much less volatile than earnings. Dividend payouts lagged earnings growth last year and may therefore exceed it this year.”
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