Priya PatelTL;DR:
– Global dividend payments are projected to rise by 0.7% this year, reaching $2.2 trillion.
– Regular dividends will maintain a growth rate of 4%, while variable dividends are expected to drop by 50%.
– Banks will continue to be the main driver of global dividends, powered by the prolonged high interest rate environment.
The outlook for global dividends is positive, with total global dividend payments expected to rise by 0.7% this year to reach $2.2 trillion, according to a new report from S&P Global Market Intelligence. Regular dividends are projected to maintain their growth rate of 4%, while variable dividends are forecasted to drop by 50%. The banking sector, which contributes 30% of total dividends, is expected to drive this growth, with payouts expected to rise by 5% year over year. In Canada, regular dividends are predicted to grow by 6% in 2024, led by the banking and energy sectors.
In terms of geographic regions, developed market dividends are expected to be healthier than emerging markets. North American dividends are forecasted to grow by 6% this year, while European payouts will rise by 4%. Developed Asian markets are expected to deliver 2% growth. In contrast, aggregate dividend payouts in developing Asian markets are projected to decline by 4%, primarily driven by weakness in China and India.
The report also highlighted other sectors expected to experience dividend growth. In Canada, the retail sector is predicted to deliver a 10% increase in dividends this year, while basic resources and utilities are expected to grow by 4% and 7%, respectively. Overall, the report provides a positive outlook for global dividend payments, with banks playing a crucial role in driving this growth.
