Global dividends fell for the third quarter in a row (in US dollar terms) between April and June. Investors received $404.9bn, a 6.7% fall on 2014’s second quarter, according to Henderson Global Investors. However, the strength of the US currency – payouts in euros, yen and other currencies were lower when expressed in dollars – has distorted a more encouraging underlying picture.
Strip out the currency effect, which wiped a record $52bn off the total, and underlying dividends gained 8.9%. This is excellent news, says Henderson’s Alex Crooke. “A dividend-paying culture is extending into new markets.”
Underlying dividend growth in Japan and South Korea, where companies have been encouraged to boost payouts, was 16.8% and 37.4% respectively. Global investors can expect to receive income worth $1.16trn in 2015, forecasts Henderson. That’s down 1.2% in US dollars, but up 7.8%, ignoring forex movements.