Janus Henderson Global Dividend Index: US Companies Distributed Record $602.1 Billion In Dividends In 2023

• US dividends increased 5.1% on an underlying basis to a record $602.1 billion in 2023.

• The technology sector was the most important driver of higher US dividends in 2023 - dividend increases from Microsoft and Broadcom contributed to more than 10% of all US dividend growth during the year.

• Buoyed by a strong domestic economy, 95% of US companies increased dividends or held them steady in 2023.

• Globally, dividends rose 5.0% on an underlying basis to a record $1.66 trillion in 2023, as sizeable cuts from just five companies reduced the global underlying growth rate by two percentage points.

US dividends increased 5.1% on an underlying basis to a record high $602.1 billion in 2023, according to the latest Janus Henderson Global Dividend Index. Led by Microsoft Corporation, which regained the position of the world's largest dividend payer after a two-year hiatus, the technology sector was the most significant driver of higher US dividends in 2023. Healthcare, vehicles, utilities and property companies also helped push US dividend growth higher during the year.

With US economic growth accelerating amid strong consumer spending, 95% of US companies either increased dividends or held them steady in 2023. Notable exceptions included Intel, which made the biggest dividend cut in the US, and AT&T.

Globally, dividends rose to a record $1.66 trillion in 2023, up by 5.0% on an underlying basis, as the banking sector delivered record payouts, which contributed to half of the world's dividend growth. However, the positive impact from higher banking dividends was almost entirely offset by cuts from the mining sector, which saw profits fall in tandem with lower commodity prices.

Nearly nine in ten (86%) companies globally either increased dividends or held them steady during the year, but large cuts from just five companies - BHP, Petrobras, Rio Tinto, Intel and AT&T - reduced the global underlying growth rate by two percentage points.

2024 Forecast

Janus Henderson is forecasting global dividends to reach $1.72 trillion in 2024, which is equivalent to an underlying growth rate of 5.0%.

Amber Milam, Client Portfolio Manager at Janus Henderson, said:

"Strong dividend growth in the US during the fourth quarter of 2023 coupled with healthy corporate balance sheets bode well for future dividend growth. With US dividend payouts increasing every year since 2011, discerning equity income investors will find companies eager to return more money to their shareholders."

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Notes to editors

Our headline growth rate describes the change in the total dollar amount paid by companies compared to the corresponding quarter each year. Our underlying figure adjusts for the distortion that can be caused by one-off special dividends, changing exchange rates, the effect of companies entering and leaving the global top 1,200 that comprise our index and the impact of changes in payment dates. The latter two tend to be negligible over the course of a whole year at the global level, though they can have a greater impact in any one quarter, geography or sector.

About Janus Henderson

Janus Henderson Group is a leading global active asset manager dedicated to helping clients define and achieve superior financial outcomes through differentiated insights, disciplined investments, and world-class service.

As of December 31, 2023, Janus Henderson had approximately US$335 billion in assets under management, more than 2,000 employees, and offices in 24 cities worldwide. The firm helps millions of people globally invest in a brighter future together. Headquartered in London, Janus Henderson is listed on the New York Stock Exchange (NYSE).

Source: Janus Henderson Group plc

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