The biggest companies in the world paid more than 560 billion dollars in dividends in the second quarter, a record for 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 the “optimistic expectations” of the company.
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%), Italy (9.4%), but less than Spain (32.7%). Janus Henderson estimates the amount of dividends in France at 49.5 billion dollars (about 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, CAC 40 companies generated more than 142 billion euros in profits thanks to record 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.
Banks were “the main driver” of dividend growth, both in Europe and globally, followed by autos in Europe, according to global asset management group Janus Henderson. The manager expects “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 were lower than earnings growth last year and may therefore exceed it this year,” said Janus Henderson Ben Lofthouse, head of the global equities team, in a press release.
