Dividend Payouts Soared to a Record $1.66 Trillion in 2023, Study Shows

Research by Janus Henderson released Wednesday found that corporate dividends worldwide rose 5% last year to a record $1.66 trillion.

The asset manager’s latest quarterly Global Dividend Index showed that 86% of the 1,200 biggest firms by market capitalization boosted their dividends. They were led by Microsoft (MSFT), which reclaimed the title it held in 2020 from the previous champion, BHP Group Ltd. (BHP).

Janus noted that dividend cuts by just five companies—the aforementioned BHP; Intel (INTC); AT&T (T); Petroleo Brasileiro, or Petrobras (PBR); and Rio Tinto (RIO)—reduced the overall growth rate by two percentage points.

By sector, banks were the powerhouse, posting all-time highs and contributing half of the overall increase. However, that advance was virtually offset by declines in the mining industry.

Carmakers made up an eighth of the rise, and the report noted “there was encouraging growth” from a wide range of industries, including utilities, software, food, and engineering. It said that demonstrated the value of a diverse portfolio. 

Breaking it down by nation, the survey pointed out that 22 countries set record dividends, with the U.S., France, Germany, and Mexico among them. 

Janus was bullish on the outlook for dividends this year, noting they “look well supported,” although one-off payouts are expected to drop from record levels set the past three years. It predicts dividends in 2024 will climb 3.9% to $1.72 trillion.