THE world’s biggest companies increased total dividend payments by 5.4 per excluding one offs in the first quarter as growth in the global economy provided a boost to profits, research has shown.
Fund management giant Janus Henderson said the top 1,200 companies by stock market capitalisation paid out $215.1 billion in the first three months without counting special dividends.
Total dividend payments in the UK fell by 5.3 per cent in dollar terms, to $15.5bn compared with $16.4bn.
However, stripping out the effect of the fall in the value of the pound, changes in the composition of the top 1,200, and special dividends payments increased by seven per cent.
The quarter’s notable features included a 17 per cent increase in dividend payments by big banks in the US.
Janus Henderson said: “The US banking sector, which used to be the richest source of US dividends before the financial crisis, is once again increasing payouts sharply, and catching up with the oil sector that has battled lower oil prices over the last two years.”
It noted a particularly large contribution came from Bank of America and Citigroup.
The oil sector remained the largest source of US dividends.
Around half the underlying growth in the UK was due to a big increase in payments by mining giant BHP Billiton.
Alex Crooke, Head of Global Equity Income at Janus Henderson said: “The outlook for the world economy looks better at present than at any time in the last few years. That means companies can grow profits and dividends at a faster pace.”
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