Emerging market companies push dividends past $1tn

Annual dividend payouts from listed businesses to shareholders have surpassed a trillion dollars for the first time, thanks to a boom in profits generated by companies in emerging economies.

LONDON - February 25, 2014.

The jump in dividends paid in 2013 represents an increase of more than 40 per cent on the $717bn in dividends paid out in 2009.

Analysts have called the breaking of the $1tn payout mark 'a huge milestone' for equity investors.

The two regions with the fastest-growing dividend payout totals between 2009-2013 were the Emerging Markets area at 107 per cent, followed by Asia Pacific at 79 per cent.

Dividends from firms in developing countries in 2013 more than doubled the combined payments they made in 2009, while contributions from Europe (not including the UK) fell from 30 per cent in 2009 to just over 20 per cent, last year.

Emerging markets made up $1 in every $7 of global dividend payouts, in spite of some emerging economy countries - such as the Brazilian real and the South African rand - falling sharply against the USD, last year.

Two star performers were China Mobile and China Construction Bank Corporation which paid $2.7bn in dividends in 2009 against $10.4bn in 2013.

North American businesses - including ExxonMobil and General Electric - continued to pay out the most in dividends, equalling one-third of the global total. European-listed companies took second place.

Three of the top 10 dividend payers globally in 2013 were British companies, with FTSE 100 companies Shell, Vodafone, and HSBC featuring among the top 10 biggest payers.

Nearly 10 per cent of all dividends paid out came from just 10 companies within the the oil, banking and telecoms sectors; while, the top 20 global dividend payers provided 16 per cent of all shareholder payouts.

Dividend concentration - Top stocks 2013

Rank   Company
 1.       Royal Dutch Shell 
 2.       Exxon Mobil
 3.       Apple
 4.       China Construction Bank 
 5.       HSBC
 6.       China Mobile
 7.       Vodafone
 8.       AT&T
 9.       Banco Santander
 10.     General Electric

Global dividends by industry 2013

Industry                                  US$bn %     Change 
 Basic Materials                          56.3          -8.1
 Consumer Basics                     102.5           2.8
 Consumer Discretionary              66.5           1.1
 Financials                                217.6          14.2
 Healthcare & Pharma                  71.2          -4.7
 Industrials                                  74.3          -2.0
 Oil, Gas & Energy                     124.9           5.8
 Technology                                 62.2          15.5
 Telecommunications                    81.8         -12.4
 Utilities                                       53.9           0.7
 TOTAL                                      911.3          2.8
 Outside top 1200                     115.7  
 GRAND TOTAL                          1,027          2.8

The quarterly Henderson Global Dividend Index (HGDI) measures the income paid by the world’s largest companies on a five-year view and is provided by the City investment management firm Henderson Global Investors.

Presswire

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