The shareholders were spoiled. Despite inflation, which is cutting purchasing power, companies paid record dividends last year. The total stands at $1.56 trillion, up 8.4% from 2021, according to new research from asset manager Janus Henderson released on Wednesday, March 1. Half of this growth is due to financial companies as well as oil and gas producers, which have benefited from soaring energy prices.
As in 2021, BHP is the company that has paid the most dividends. The Anglo-Australian mining company gave away $23.5 billion to its shareholders in 2022. It is followed by the Brazilian oil company Petrobras ($21.75 billion) and the American computer giant Microsoft ( $18.98 billion). Next come Exxon Mobil, Apple, China Construction, Rio Tinto, China Mobile, JPMorgan Chase and Johnson & Johnson.
Overall, Janus Henderson estimates that 88% of companies increased or maintained their dividends in 2022. “Global dividends have totally caught up post-pandemic,” observes Jane Shoemake, client portfolio manager on the Global team. Equity Income quoted in Janus Henderson’s press release. And this “despite galloping inflation, interest hikes, war and falling asset prices.” Twelve States stood out, recording record payments in 2022: first the United States, Canada, Brazil, China, India and Taiwan in dollars, then France, Germany, Japan and Australia in their local currency.
TotalEnergies and LVMH, the biggest French payers
France is not left out. It is the country that contributed the most to the growth of dividends in Europe, with 59.8 billion euros. This amount “exceeds the 2019 record by 4.6%”, indicates Charles-Henri Herrmann, director of development France & BeNeLux distribution of Janus Henderson. This growth is due in particular to “the impressive increases recorded by companies in the luxury and automotive sectors”. The proof is: TotalEnergies and LVMH were the biggest dividend payers in France.
However, it is not certain that the shareholders will continue in the same vein. Looking to 2023, “the dividend outlook is more uncertain,” says Jane Shoemake. In question: “inflation, the magnitude of new rate hikes and geopolitical risks”. The asset manager is still counting on a new record of 1,600 billion dollars in dividends distributed, these being “less volatile than profits”.