Dividends paid around the world reach a new record in 2022

Companies returned $1.56 trillion in dividends to their shareholders in 2022, a new record set in part thanks to oil and gas companies, according to a study released Wednesday (March 1). The total amount of dividends paid is up 8.4% compared to 2021, when the previous record was set thanks to the rebound in global economic activity after the health crisis, specifies a report by asset manager Janus Henderson .

Oil and gas producers, as well as financial companies, accounted for half of this growth, according to the Global Dividend Index which lists the 1,200 largest market capitalizations. Due to soaring energy prices which inflated their profits, they “increased their distributions by more than 66%, in the form of ordinary or extraordinary dividends”, says Janus Henderson. The banks continued to benefit from the reauthorization of dividends, after they were frozen by the European Central Bank at the start of the pandemic.

A new record in 2023?

In France, the country which contributed the most to the growth of dividends in Europe with 59.8 billion euros (+4.6%), TotalEnergies and LVMH were the groups which paid the most to their shareholders. Huge corporate profits and dividends paid out in 2022, amid rising inflation, have reignited the debate over taxing corporations. “superprofits”but also the sharing of value with employees.

“As for the year ahead, the dividend outlook is more uncertain”, according to Janus Henderson. If the asset manager expects a new record in 2023, “Inflation, the magnitude of further rate hikes and geopolitical risks cloud the horizon”he said in a press release.