Corporate dividends reach $1.66T in 2023: Report
A report from the Janus Henderson Global Dividend Index revealed that global corporate dividends reached an all-time high of $1.66 trillion in 2023. Notably, 86% of businesses worldwide increased or maintained their dividend payouts during the year— with Microsoft (MSFT), Apple (AAPL), and Exxon Mobil (XOM) being the world's top three dividend payers.
Yahoo Finance's Madison Mills and Seana Smith break down the details.
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Editor's note: This article was written by Angel Smith
Video Transcript
MADISON MILLS: We're also going to talk about dividends because global corporate dividends hit a new high of $1.66 trillion last year, with banks making up half of that. Worldwide, 86% of listed companies either increased or maintained their dividends. That's all according to a quarterly report done by the Janus Henderson Global Dividend Index.
And it's just really interesting seeing this new record of $1.72 trillion in dividend payouts this year. This was such a big deal that it contributed to the jobs report. We saw that personal income.
At least 4 percentage points of that was attributed to the rise in dividends. So it paints to this broader picture of how we're continuing to see a correlation between market performance and the strength that we're seeing in consumer spending in the overall economy.
SEANA SMITH: Yeah, exactly. The strong, healthy corporate balance sheets really here front and center, and that's a big driver of the dividend action that we have seen. You mentioned, Maddie, what we were seeing globally, even here within the US. Very impressive numbers.
$602.1 billion in total was handed back to shareholders last year through dividends. That was up 5%. Microsoft in the top spot here, the largest dividend payer last year, handing out more than $20 billion in cash to shareholders, followed closely by Apple. Apple was in the number two spot.
But you're talking about what lies ahead here for 2024. And like you were saying, $1.72 trillion on a global basis is expected to be paid out, another 5% jump. So that also is very similar to some of the calls that we have gotten from others on the Street.
S&P Global was also out predicting another record level of dividend growth in 2024 when they're looking for another 4% increase globally, 6% here within the US. So this is a trend that has been talked about over the last several quarters. But it's certainly something that we called out in this most recent quarter as a trend that we have heard many of these companies that not only are paying dividends, but also raising the amount that they are paying to shareholders. So it looks like, at least if these forecasts are right, we could be set up for another record year ahead.
MADISON MILLS: Yeah. I remember being on with you a couple of months ago and you booking a guest who talked about the importance of getting in on dividend plays because at least, it's a guarantee of cash. And that's kind of a hedge against any of the macro concerns. It's also interesting looking at some of those big tech names that you mentioned.
I'm fascinated that Meta isn't even in the top couple there because just Mark Zuckerberg alone is expected to make $700 million in dividends due to that dividend increase from Meta this year. So not a bad-- not a bad year of returns there.
SEANA SMITH: Yeah, exactly. That surprise announcement that we got at Meta in its latest earnings report.
