Dividend growth accelerated in the second quarter, according to Janus Henderson’s Global Dividend Study.
The study is based on the Janus Henderson Global Dividend Index (JHGDI), which measures the progress global firms are making in paying their investors an income on their capital, and tracks dividends paid by the 1,200 largest firms by market capitalization.
The JHGDI rose to 161.9 – its highest level in three years – in Q2.
According to the study, “a more synchronized world economy supported corporate profits, with companies returning more of the resulting cash generated to their shareholders.”
Global dividends hit a new all-time quarterly record of $447.5 billion, up 5.4% year on year. Underlying growth was 7.2%, the fastest since late 2015, with every region seeing dividends grow in underlying terms.
“The improvement marked a welcome return to the long-term trend rate of dividend growth, following a lackluster showing over the last couple of years,” the study states.
Given strong Q2 dividend growth, Janus Henderson upgraded its forecast for 2017 to $1.208 trillion, which is up 3.9% year on year, equivalent to an underlying increase of 5.5%.