New highs for dividends paid around the world in 2022

Companies have once again been generous to their shareholders by paying them 1.560 billion dollars in dividends in 2022, a new record set in part thanks to oil and gas companies, before a promising year 2023, according to a study published on Wednesday March 1.

The total amount of dividends paid is up 8.4% compared to 2021, the previous record year thanks to the rebound in global economic activity after the health crisis, according to a report by asset manager Janus Henderson.

Oil and gas producers and financial companies accounted for half of this growth, according to the Global Dividend Index, which lists the 1,200 largest market capitalizations.

Due to soaring energy prices which inflated their profits, they

, specifies the asset manager.

Did the banks continue to benefit from the reauthorization of dividends, after they were frozen by the European Central Bank at the start of the pandemic: they contributed a quarter of the overall increase.

The maritime transport sector benefited from the increase in freight, in particular for the Danish Maersk, that of the automobile from the increase in the price of cars and the luxury sector from the continuous increase in demand.

These last two sectors are the

of dividend growth in Europe, although

from French energy companies TotalEnergies and Norwegian Equinor have

.

Mining companies in the spotlight

In 2021, mining companies had been in the spotlight, with four companies in the top 10 entities having paid the most dividends.

The year 2022 has seen the price of commodities drop slightly, causing their dividends to decline.

But the Anglo-Australian mining company BHP remains on the first step of the podium while its counterpart Rio Tinto remains in 7th place.

The 2022 podium is completed by the Brazilian state oil company Petrobras and the American computer giant Microsoft.

Next come Apple, China Construction Bank, China Mobile, JPMorgan Chase and Johnson & Johnson.

Twelve countries recorded record dividends denominated in dollars, the United States, Canada, Brazil, China, India as well as Taiwan, and several others in their currency, France, Germany, Japan and Australia.

While emerging markets grew

, more traditional markets like the United States saw growth relatively

.

Dividends had held up well during the pandemic in the country, which is also less exposed to sectors that have exploded this year.

Seven of Janus Henderson's top 10 companies remain American.

Two sectors contributed strongly to the growth of US dividends: energy (with a large exceptional payment for Pioneer Natural Resources and large dividends for Chevron and Exxon) and financial companies (with Wells Fargo, Morgan Stanley and Blackstone in particular) .

Chevron and Exxon also matched their dividends with huge share buybacks, which also hit record highs in 2022.

“A more uncertain outlook”

In France, the country which contributed the most to the growth of dividends in Europe with 59.8 billion euros (+4.6%), TotalEnergies and LVMH were the biggest payers of dividends.

According to Janus Henderson, 88% of companies (95% in France) increased or maintained their dividends in 2022.

"As for the coming year, the outlook for dividends is more uncertain

," said Jane Shoemake, portfolio manager, quoted in the press release.

The asset manager is still counting on a new record of 1.6 trillion dollars in dividends distributed, these being

, i.e. slower growth than in 2022 (+ 2.3%) .

," adds Jane Shoemake.

Huge corporate profits and dividends paid out in 2022, as the global economy falters and inflation suffocates purchasing power, have reignited the debate about taxing windfall “superprofits”

also sharing the value with employees.