Global dividends to fall by at least 15% in 2020, says Janus Henderson

Dividends from global companies are expected to fall by at least 15% this year due to the coronavirus pandemic, which is severely affecting economic activity, management company Janus Henderson warned on Monday.

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"To assess the impact of the pandemic on the dividends of the year 2020, Janus Henderson has scrutinized companies representing more than three quarters of global payments in terms of value. The team has identified those who have already canceled or suspended payments, those whose bail payments they deem to be the least likely to be affected, ”she said.

In the “optimistic” case, only dividend reductions already announced or which will very probably be taken into account. This suggests that global payments will drop 15% this year to $ 1.210 billion ($ 1.120 billion), down from $ 213 billion, says Janus Henderson.

In the "pessimistic" case, which also includes all those who are tangent, global payments could fall by 35% this year, to $ 933 billion, said the management company.

"The magnitude of the range reflects the rapid evolution of the crisis and the likelihood that many companies will simply cut their payments rather than cancel them completely," says Janus Henderson.