World dividends expected to top $1 trillion in 2014

Joseph Millis
GLOBAL dividends reached $288.1bn (£184bn) – a record for the third quarter, according to the latest Henderson Global Dividend Index (HGDI)

Although headline growth was modest at 3.8 per cent, compared to the third quarter of 2013, it masked a rapid year-on-year 9.7 per cent underlying increase, in line with the strong expansion seen in the first half of the year.

On an underlying basis, the US, Europe, emerging markets and Asia Pacific – excluding Japan – all achieved impressive double-digit dividend increases, while the UK, Canada and Japan lagged behind.

For the full year, Henderson Global Investors expects dividends to reach $1.19 trillion, a headline increase of 12.6 per cent. For 2015, the Henderson’s preliminary forecast is $1.24 trillion for global dividends. Next year’s expected headline increase – 4.2 per cent – is slower than the underlying 7.2 per cent, mainly due to Vodafone not repeating its record $26bn dividend.

Alex Crooke, head of global equity income at Henderson said this year would “break a new record for global dividends. The third quarter has extended the rapid growth in income… and we are confident of double digit growth for the full year.

“Despite the uncertain outlook for economic growth in 2015, we expect another good year of dividend growth, albeit at a slower rate than this year.”