Figures that make you dizzy. Some $1.47 trillion in dividends were paid out by global companies to their shareholders in 2021. Unprecedented figures, boosted by the rebound in the global economy and windfall profits for mining companies, according to the asset manager’s report Janus Henderson, released Tuesday, March 1. Dividends have increased by 16.7% compared to 2020, and by 3.2% compared to the previous record, dating from 2019. And these figures could be beaten again in 2022.
“The last two years have been extraordinary, with a sharp decline and then a spectacular rebound. Today, it seems that we have returned to the rhythm of long-term growth”, summarizes to AFP Jane Shoemake, portfolio manager at Janus Henderson.
The dynamics of 2021 affected all sectors: nine out of ten companies increased or maintained their dividends. Mining companies have been particularly strong, with nearly $100 billion in dividends paid. The exceptional profits of these groups in 2021, driven by soaring commodity prices, enabled them to double their dividends compared to 2019, the year of their previous record.
Symbol of this rebound, it is the Anglo-Australian mining company BHP which paid the most dividends, according to the ranking. It dethrones Microsoft, which moves to 2nd place in 2021. Three other mining companies occupy the top 10 of the ranking: Rio Tinto (3rd, listed in London as BHP), the Brazilian Vale (8th) and the Australian Fortsecue Metal (10th) . With this sector, the United Kingdom was one of the regions of the world where dividend growth was strongest. But the United States still concentrates 44% of dividends worldwide.
Another highly represented sector: technology. It was the big winner from the economic consequences of the pandemic, which was felt in the jump in profits of companies in the sector and then in their dividends. Besides Microsoft, Samsung and Apple are among the ten biggest dividend payers in the world.