Dividends continue to rise around the world, particularly in France. Between April and June 2023, the 1,200 largest listed companies redistributed $568.1 billion in dividends to their shareholders, the asset manager said on Wednesday August 30. Janus Henderson.
This growth of 4.9% compared to the same period of 2022 “exceeds [de peu les] optimistic expectations.” In Europe, where two-thirds of the dividends are realized during these three months, because many companies choose to pay the entire annual dividend at once, the increase was 9.7%.
In France, which represents nearly 30% of dividends in Europe, the trend is even more marked with an increase of 13.3%, ahead of other major economies, such as Germany (9.6%), Italy (9.4%), but less than Spain (32.7%). Janus Henderson estimates the amount of dividends in France at 49.5 billion dollars (about 46 billion euros), a record.
BNP Paribas, Sanofi, Axa, LVMH and Engie, whose dividends rose by two-thirds, were the main redistributors in the second quarter, and are all in the top 20 worldwide.
Banks, the main driver of dividend growth
Dividends, which allow companies to redistribute part of their profits to their shareholders, follow the profit trend of the main French multinationals: in 2022, CAC 40 companies generated more than 142 billion euros in profits thanks to record luxury and energy. Companies can also redistribute money to their shareholders in the form of share buybacks, a practice that is becoming more and more widespread in Europe.
Banks were “the main driver” of dividend growth, both in Europe and globally, followed by autos in Europe, according to global asset management group Janus Henderson, which expects “that the rise in dividends continues”. “A reassuring feature of dividend income is that it is typically much less volatile than earnings. Dividend payouts lagged earnings growth last year and may therefore exceed it this year,” Ben Lofthouse said. , head of Janus Henderson’s global equities team, in a press release.