Global dividends reached a record $1.75 trillion in 2024, according to the Janus Henderson Global Dividend Index, marking a 6.6% increase on an underlying basis. Headline growth stood at 5.2%, influenced by reduced one-off special dividends and a stronger US dollar. The result slightly surpassed Janus Henderson’s forecast of $1.73 trillion, driven by stronger-than-expected performances in the US and Japan during the final quarter. Fourth-quarter payouts rose 7.3% on an underlying basis.
Growth was robust across Europe, the US, and Japan, with emerging markets like India, Singapore, and South Korea also seeing healthy increases. A record 17 out of 49 countries in the index, including the US, Canada, France, Japan, and China, reported record dividend payouts.
A significant portion of the growth was driven by major companies making their first dividend payments. Meta and Alphabet in the US and Alibaba in China contributed $15.1 billion, accounting for one-fifth of 2024’s global dividend growth.
From a sector perspective, financials were the largest contributors, with bank dividends rising 12.5% on an underlying basis. Media sector dividends doubled, supported by Meta and Alphabet's entries. Other sectors showing double-digit growth included telecoms, construction, insurance, consumer durables, and leisure. Mining and transport sectors saw the largest declines, with payouts dropping by $26 billion.
Microsoft maintained its position as the world’s largest dividend payer, while Exxon, following its acquisition of Pioneer Resources, climbed to second place—a position it last held in 2016.
Overall, 88% of companies increased or maintained their dividends, with the median rise being 6.7%.
Looking ahead, Janus Henderson anticipates dividends to grow by 5.0% in 2025, reaching $1.83 trillion. Underlying growth is projected at 5.1%, with currency fluctuations moderating headline growth.
Jane Shoemake, Client Portfolio Manager at Janus Henderson, said, “Some of the world’s most valuable companies, particularly those with roots in the US technology sector, are beginning to pay dividends for the first time... They are proving they mature by returning surplus cash to investors, significantly boosting global dividend growth.”
She also noted potential challenges in 2025, including global economic uncertainty, trade risks, and market volatility. Despite these, dividends are expected to remain resilient due to companies' discretion over payouts, offering stability for income investors.
