The latest figures reveal that 86% of all listed companies either maintained their dividends or increased them in 2023. This led to a record payout of $1.66tn ($2.5tn AUD) in dividends last year, rising from the $1.57tn ($2.38tn AUD) paid in 2022.
2023 saw record amount of corporate dividends paid
The data comes from the Janus Henderson Global Dividend Index (JHGDI) report, which is released on a quarterly basis. It confirmed that Microsoft (MSFT) paid the most significant dividend in 2023. Apple (APPL) and Exxon Mobil (XOM) followed the tech giant on the list.
Ben Lofthouse, the head of global equity income at Janus Henderson, said that the strength of cash flow in the majority of sectors “provided plenty of firepower for dividends and share buybacks”.
Banks account for a sizeable percentage of the dividends, with a record $220bn ($333bn AUD) coming from this sector in 2023. This represented an increase of 15% from 2022 as higher interest rates helped banks to reach better profits. However, mining companies such as Rio Tinto (RIO) and BHP (BHP) suffered as falling commodity prices caused them to cut their dividends sharply.
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Consumer goods firm Reckitt Benckiser (RKT) is among the companies to have boosted their dividend this year. The firm’s dividend rose from 183.3p ($3.5 AUD) to 192.5p ($3.73 AUD). This includes a final proposed dividend of 115.9p ($2.24 AUD), which is an increase from 2022’s 110.3p ($2.14 AUD).
The current prediction from Janus Henderson is for a 5% growth rate in corporate dividends in 2024, which would lead to payouts totalling $1.72tn this year, if correct.
