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Global dividend survey: Banks shine, mining companies struggle in Q3 2023

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2023-11-16

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Banks outperformed while mining companies faced challenges in paying dividends in the third quarter of 2023, according to the latest global dividend survey by Janus Henderson, a fund management firm.

The survey revealed that the global dividend total for the largest 1,200 companies fell by 0.9% to $US421.9 billion in Q3. The dip led Janus Henderson to revise its 2023 dividend forecast from $US1.64 trillion to $US1.63 trillion, still a 4.4% year-on-year increase.

Cuts in the mining sector were substantial, with dividends falling 36.9% on an underlying basis, driven by Australia's mining giants like BHP, Fortescue Metals Group, and Rio Tinto.

Despite the challenges in the mining sector, the survey showed an underlying growth of 0.3%, considering special dividends and exchange rates, aligning with long-term trends.

Banks globally stood out, with a 9.3% rise in dividends, particularly in Australia, where the Big Four banks increased dividends by about 14% year-on-year.

China reached a new dividend record, primarily due to PetroChina and China Mobile. Chinese companies raised payouts by 7.8% to a record $US38.2 billion.

In the United States, dividends grew by 4.5%, and Canada performed well due to its strong banking and oil sectors.

European dividends continued their robust growth, driven by banks, while the UK saw a balance between lower mining payouts and increases in other sectors.

Despite some doubts about earnings performance, most large dividend-paying U.S. companies increased or maintained their payouts in Q3, contributing to a 4.5% increase in U.S. dividends.

Overall, the survey highlighted that despite challenges in certain sectors, the global dividend landscape remained resilient, with companies adapting to changing economic conditions and showing steady growth.

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