Resurgence of global dividends expected after strong Q1 performance

Growth 1.7% lower than Q1 2020

Global dividends are showing signs of resurgence with payouts in the first quarter of 2021 only 1.7% lower on an underlying basis than the same period the previous year, a decline that is substantially smaller than the previous three quarters, which all reported double digit declines.

Dividend payouts for the first three months of the year hit £275.8bn, just 2.9% lower on a headline basis. The encouraging figures led Janus Henderson to upgrade their dividend forecast for 2021 in their latest Global Dividend Index. The asset manager now expects dividends to reach $1.4trn for the year, an 8.4% headline increase from the previous year, up from the January forecast of $1.3trn. During Q1 just one company in five (18%) cut its dividend, well below the one third (34%) over the last year overall. Dividends versus coupons: How to meet the income investing challenge In...