US dividends surge to all-time high in Q2 2022

Janus Henderson reports a remarkable growth in US dividends, rising by 8.3% to $144.4bn in Q2, a record high.

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08/24/2022 - 08:30 AM EDT

Strong growth from financial sector lifts equity income

US dividends rose 8.3% in the second quarter to $144.4bn - an all-time quarterly high.
Two-fifths of the increase in US dividend payments came from the booming financial sector.
Globally, quarterly dividends totalled $544.8bn in Q2, up 19.1%.
94% of companies in the Janus Henderson Global Dividend Index increased or maintained their dividends.

DENVER--(BUSINESS WIRE)-- US dividends increased 8.3% on an underlying basis in the second quarter to $144.4bn, an all-time quarterly high, according to the latest Janus Henderson Global Dividend Index. Two-fifths of the increase can be traced to the financial sector. Notably, Morgan Stanley and Wells Fargo made the largest contributions to growth in US dividends, collectively contributing an extra $1.1 billion.

Globally, dividends surged 19.1% on an underlying basis to an all-time quarterly high of $544.8bn in Q2 2022, as 94% of companies raised or maintained dividend payments during the quarter. Despite the significant economic disruption caused by the pandemic, global dividends have surpassed pre-pandemic levels.

Upgraded forecast

Janus Henderson is making a modest upgrade to its annual forecast, now expecting 2022 dividend payments to reach $1.56 trillion – up from $1.54 trillion last quarter. This translates into headline growth of 5.8% year-over-year, equivalent to an 8.5% increase on an underlying basis.

Oil, financials and car manufacturers were key drivers

Key sector trends played out internationally. Surging cash flows from high oil prices meant oil producers contributed two-fifths to second quarter growth; those in Brazil and Colombia in particular, contributed significantly.

Banks and other financials accounted for another two-fifths of overall growth, while consumer discretionary sectors, especially car manufacturers, also delivered strong dividend growth. Lower special dividends and a steep cut from AT&T held back technology and telecoms, respectively.

Matt Peron, Director of Research at Janus Henderson said:
“Dividends continue to capture investor attention as uncertainty surrounding the economy’s plight has increased demand for companies with strong free cash flow. As we move toward 2023, any slowdown in economic growth will likely have a larger impact on dividend payments outside the US. Within the US, dividend growth has shown remarkable resilience across market cycles, as companies have demonstrated they are more likely to cut back on share buybacks than trim dividend payments.”

To receive a copy of the latest Janus Henderson Global Dividend Index, click here.

Notes to editors
Our headline growth rate describes the change in the total dollar amount paid by companies compared to the corresponding quarter each year. Our underlying figure adjusts for the distortion that can be caused by one-off special dividends, changing exchange rates, the effect of companies entering and leaving the global top 1,200 that comprise our index and the impact of changes in payment dates. The latter two tend to be negligible over the course of a whole year at the global level, though they can have a greater impact in any one quarter, geography or sector.

About Janus Henderson

Janus Henderson Group is a leading global active asset manager dedicated to helping investors achieve long-term financial goals through a broad range of investment solutions, including equities, fixed income, multi-asset, and alternative asset class strategies.

On 30 June 2022, Janus Henderson had approximately US$300 billion in assets under management, more than 2,000 employees, and offices in 23 cities worldwide. Headquartered in London, the company is listed on the NYSE and the ASX.

This press release is solely for the use of members of the media and should not be relied upon by personal investors, financial advisers or institutional investors. We may record telephone calls for our mutual protection, to improve customer service and for regulatory record keeping purposes. All opinions and estimates in this information are subject to change without notice

Issued by Janus Henderson Investors. Janus Henderson Investors is the name under which investment products and services are provided by Janus Henderson Investors International Limited (reg no. 3594615), Janus Henderson Investors UK Limited (reg. no. 906355), Janus Henderson Fund Management UK Limited (reg. no. 2678531), Henderson Equity Partners Limited (reg. no.2606646), (each registered in England and Wales at 201 Bishopsgate, London EC2M 3AE and regulated by the Financial Conduct Authority) and Henderson Management S.A. (reg no. B22848 at 2 Rue de Bitbourg, L-1273, Luxembourg and regulated by the Commission de Surveillance du Secteur Financier). Henderson Secretarial Services Limited (incorporated and registered in England and Wales, registered no. 1471624, registered office 201 Bishopsgate, London EC2M 3AE) is the name under which company secretarial services are provided. All these companies are wholly owned subsidiaries of Janus Henderson Group plc. (incorporated and registered in Jersey, registered no. 101484, with registered office at 13 Castle Street, St Helier, Jersey, JE1 1ES). Janus Henderson Investors (Australia) Limited ABN 47 124 279 518 is not under any obligation to update this information to the extent that it is or becomes out of date or incorrect.

Janus Henderson, Knowledge Shared and Knowledge Labs are trademarks of Janus Henderson Group plc or one of its subsidiaries. © Janus Henderson Group plc.