Corporate dividends worldwide reached an unprecedented high of $1.66 trillion in 2023, according to reports from British asset manager Janus Henderson released on Wednesday.<o:p></o:p>

The surge, driven largely by the banking sector, reflects a 5 per cent increase year-on-year, showcasing the strength of global shareholder payouts.<o:p></o:p>

Banks capitalised on surging profits, particularly as high interest rates bolstered margins. <o:p></o:p>

Major players such as JPMorgan Chase, Wells Fargo, and Morgan Stanley announced plans to increase quarterly dividends following the Federal Reserve's stress test clearance.<o:p></o:p>

"Corporate cash flow in most sectors remained strong and this provided plenty of firepower for dividends and share buybacks," Reuters quoted Ben Lofthouse, head of global equity income at Janus Henderson as saying.<o:p></o:p>

Despite the banking sector's remarkable performance, the mining industry saw substantial dividend cuts from prominent companies such as BHP, Petrobras, Rio Tinto, Intel, and AT&amp;T. <o:p></o:p>

These cuts diluted the global underlying growth rate by two percentage points, underscoring the sectoral nuances within the broader economic landscape.<o:p></o:p>

Janus Henderson's report also highlights the role played by Europe in driving global dividend growth. <o:p></o:p>

Europe, excluding the UK, experienced a notable 10.4 per cent increase in payouts on an underlying basis, positioning the region as a key engine of growth. <o:p></o:p>

Additionally, several countries, including the US, France, Germany, Italy, Canada, Mexico, and Indonesia, witnessed record dividend payouts in 2023.<o:p></o:p>

Looking ahead, Janus Henderson anticipates continued growth in corporate dividends, projecting a total of $1.72 trillion for 2024, with underlying growth estimated at 5 per cent. <o:p></o:p>

While the rapid increase in banking dividends may taper off, sectors like energy and defence are expected to maintain steady progress, contributing to sustained shareholder payouts.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

Corporate dividends worldwide reached an unprecedented high of $1.66 trillion in 2023, according to reports from British asset manager Janus Henderson released on Wednesday.

Corporate dividends worldwide reached an unprecedented high of $1.66 trillion in 2023, according to reports from British asset manager Janus Henderson released on Wednesday. The surge, driven largely by the banking sector, reflects a 5 per cent increase year-on-year, showcasing the strength of global shareholder payouts. Banks capitalised on surging profits, particularly as high interest rates bolstered margins. Major players such as JPMorgan Chase, Wells Fargo, and Morgan Stanley announced plans to increase quarterly dividends following the Federal Reserve's stress test clearance. "Corporate cash flow in most sectors remained strong and this provided plenty of firepower for dividends and share buybacks," Reuters quoted Ben Lofthouse, head of global equity income at Janus Henderson as saying. Despite the banking sector's remarkable performance, the mining industry saw substantial dividend cuts from prominent companies such as BHP, Petrobras, Rio Tinto, Intel, and AT&T. These cuts diluted the global underlying growth rate by two percentage points, underscoring the sectoral nuances within the broader economic landscape. Janus Henderson's report also highlights the role played by Europe in driving global dividend growth. Europe, excluding the UK, experienced a notable 10.4 per cent increase in payouts on an underlying basis, positioning the region as a key engine of growth. Additionally, several countries, including the US, France, Germany, Italy, Canada, Mexico, and Indonesia, witnessed record dividend payouts in 2023. Looking ahead, Janus Henderson anticipates continued growth in corporate dividends, projecting a total of $1.72 trillion for 2024, with underlying growth estimated at 5 per cent. While the rapid increase in banking dividends may taper off, sectors like energy and defence are expected to maintain steady progress, contributing to sustained shareholder payouts. (With inputs from Reuters)

Global dividend payouts soar to record high of $1.66 tn in 2023, led by banking sector

The dollar charged to its highest in more than two years on Thursday after the <a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/business-economy/stormy-sterling-sinks-again-stocks-wilt-before-fed-239448&amp;sa=U&amp;ved=2ahUKEwjO-ZbLuOHjAhUBr48KHSApDvgQFjAFegQIBBAC&amp;usg=AOvVaw3Y8jTTDaVY7qnK939Bej7w">Federal Reserve</a> spoiled hopes of a run of US interest rate cuts.

A blizzard of global data and events was going on, but it was Fed Chair Jerome Powell's remarks on Wednesday that set the markets running. Powell said the first US rate cut in over a decade was "not the beginning of a long series of rate cuts".

The dollar’s reaction said it all. The DXY index surged to its highest in more than two years, euro/dollar dropped below $1.11 for the first time since May 2017, and Brexit-hobbled sterling hit 30-month lows just above $1.21.

World stocks had recoiled overnight and emerging markets had their longest run of falls in almost a year.

"Markets interpreted the Fed’s communication as slightly hawkish and therefore further rate cuts in the immediate future were somewhat priced out," said David Milleker, senior economic advisor at Union Investment. "And the dollar strengthened. All in all, the Fed did not achieve what it presumably wanted."

US Treasuries were sold off as investors scaled back their pre-Fed expectations for at least 100 basis points of cuts in the near term. Yields on 10-year notes climbed as high as 2.058% in Europe from a US close of 2.007%.

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Core eurozone bond yields were rising, too, although -0.428% German Bund levels were still extraordinary. "I didn’t say it’s just one rate cut," Powell had been careful to emphasise after Wednesday's 25-basis-point move.

Instead, he characterised it as "a mid-cycle adjustment to policy", citing signs of a global slowdown, US trade tensions and a desire to boost inflation.

Wall Street fell afterwards and E-minis futures for the S&amp;P 500 were pointing 0.15% lower.

MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.8%, extending losses for a fifth day to the lowest since mid-June and posting its biggest one-day percentage drop in a month.

Japan's Nikkei rose, reversing early declines. Australian shares declined 0.4%. Losses by Chinese shares ended down 0.8%.

"We believe the Fed is trying to thread the needle, balancing market jitters about slowing global growth with robust consumer spending and a strong job market in the US," said Nick Maroutsos, co-head of global bonds at Janus Henderson.

"In other words, by cutting just 25 bps, the Fed is trying to bolster market confidence while also keeping some dry powder in reserve in case of an economic shock."

Trade Talks

Adding to worries, the United States and China on Wednesday ended a brief round of talks without much progress in ending their year-long trade war.

Downbeat data and factory surveys on Thursday had also pointed to further weakness for Asia's trade-reliant economies.

South Korea's exports fell for an eighth straight month in July amid weak global demand and a dispute with Japan. New export orders shrank the most in about six years.

South Korea, the world's sixth-largest exporter, is the first major industrial economy to release trade data each month, providing an early assessment on the health of global demand.

Pressure on Chinese factories eased slightly, but manufacturing activity continued to shrink.

"The broader global trade dynamic remains a challenge," Morgan Stanley strategist Michael Zezas said. "Trade should continue to drag on corporate confidence, CapEx and global growth in the near term."

In Europe's foreign exchange markets, sterling dropped as low as $1.2101 before a Bank of England meeting that's expected to leave its 0.75% interest rate unchanged but result in plenty of interesting discussions.

Fears of a <a href="https://www.google.com/url?client=internal-uds-cse&amp;cx=006054055338965708568:09spwrlibei&amp;q=https://www.wionews.com/world/britain-to-spend-an-extra-26-billion-on-no-deal-brexit-planning-239860&amp;sa=U&amp;ved=2ahUKEwjd24uDu-HjAhUW8XMBHSfID2IQFjAAegQIBhAC&amp;usg=AOvVaw05e85f7pwO51L5lCnpMiS3">no-deal Brexit</a> now that Boris Johnson is prime minister continue to afflict the pound, although it was fractionally higher against a weakening euro at 91.17 pence.

"Sterling remains vulnerable to a further escalation in Brexit tensions and we anticipate the market will likely discount higher risks of a ‘no deal’ outcome in the weeks ahead," said Roger Hallam, currency chief investment officer at JP Morgan Asset Management.

Elsewhere, the Aussie dollar slipped below key chart support of $0.6832 to as low as $0.6828, a level not seen since an early January "flash crash".

The kiwi hit a six-week trough of $0.6535 on expectations the Reserve Bank of New Zealand will cut rates next week.

US crude futures fell 76 cents to $57.82 per barrel after comments on the rating outlook. Brent was down 71 cents at $64.34.

Spot gold also fell, to $1,405.26.

The dollar charged to its highest in more than two years on Thursday after the Federal Reserve spoiled hopes of a run of US interest rate cuts. A blizzard of global data and events was going on, but it was Fed Chair Jerome Powell's remarks on Wednesday that set the markets running.

The dollar charged to its highest in more than two years on Thursday after the Federal Reserve spoiled hopes of a run of US interest rate cuts. A blizzard of global data and events was going on, but it was Fed Chair Jerome Powell's remarks on Wednesday that set the markets running. Powell said the first US rate cut in over a decade was "not the beginning of a long series of rate cuts". The dollar’s reaction said it all. The DXY index surged to its highest in more than two years, euro/dollar dropped below $1.11 for the first time since May 2017, and Brexit-hobbled sterling hit 30-month lows just above $1.21. World stocks had recoiled overnight and emerging markets had their longest run of falls in almost a year. "Markets interpreted the Fed’s communication as slightly hawkish and therefore further rate cuts in the immediate future were somewhat priced out," said David Milleker, senior economic advisor at Union Investment. "And the dollar strengthened. All in all, the Fed did not achieve what it presumably wanted." US Treasuries were sold off as investors scaled back their pre-Fed expectations for at least 100 basis points of cuts in the near term. Yields on 10-year notes climbed as high as 2.058% in Europe from a US close of 2.007%. WATCH VIDEO × Core eurozone bond yields were rising, too, although -0.428% German Bund levels were still extraordinary. "I didn’t say it’s just one rate cut," Powell had been careful to emphasise after Wednesday's 25-basis-point move. Instead, he characterised it as "a mid-cycle adjustment to policy", citing signs of a global slowdown, US trade tensions and a desire to boost inflation. Wall Street fell afterwards and E-minis futures for the S&P 500 were pointing 0.15% lower. MSCI's broadest index of Asia-Pacific shares outside Japan fell 0.8%, extending losses for a fifth day to the lowest since mid-June and posting its biggest one-day percentage drop in a month. Japan's Nikkei rose, reversing early declines. Australian shares declined 0.4%. Losses by Chinese shares ended down 0.8%. "We believe the Fed is trying to thread the needle, balancing market jitters about slowing global growth with robust consumer spending and a strong job market in the US," said Nick Maroutsos, co-head of global bonds at Janus Henderson. "In other words, by cutting just 25 bps, the Fed is trying to bolster market confidence while also keeping some dry powder in reserve in case of an economic shock." Trade Talks Adding to worries, the United States and China on Wednesday ended a brief round of talks without much progress in ending their year-long trade war. Downbeat data and factory surveys on Thursday had also pointed to further weakness for Asia's trade-reliant economies. South Korea's exports fell for an eighth straight month in July amid weak global demand and a dispute with Japan. New export orders shrank the most in about six years. South Korea, the world's sixth-largest exporter, is the first major industrial economy to release trade data each month, providing an early assessment on the health of global demand. Pressure on Chinese factories eased slightly, but manufacturing activity continued to shrink. "The broader global trade dynamic remains a challenge," Morgan Stanley strategist Michael Zezas said. "Trade should continue to drag on corporate confidence, CapEx and global growth in the near term." In Europe's foreign exchange markets, sterling dropped as low as $1.2101 before a Bank of England meeting that's expected to leave its 0.75% interest rate unchanged but result in plenty of interesting discussions. Fears of a no-deal Brexit now that Boris Johnson is prime minister continue to afflict the pound, although it was fractionally higher against a weakening euro at 91.17 pence. "Sterling remains vulnerable to a further escalation in Brexit tensions and we anticipate the market will likely discount higher risks of a ‘no deal’ outcome in the weeks ahead," said Roger Hallam, currency chief investment officer at JP Morgan Asset Management. Elsewhere, the Aussie dollar slipped below key chart support of $0.6832 to as low as $0.6828, a level not seen since an early January "flash crash". The kiwi hit a six-week trough of $0.6535 on expectations the Reserve Bank of New Zealand will cut rates next week. US crude futures fell 76 cents to $57.82 per barrel after comments on the rating outlook. Brent was down 71 cents at $64.34. Spot gold also fell, to $1,405.26.

Mind your backs, dollar coming through!

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Global dividend payouts soar to record high of $1.66 tn in 2023, led by banking sector

Mind your backs, dollar coming through!