Global Dividends Reach Record High of $1.75 Trillion in 2024
6 MAR, 2025
Global dividend payouts hit a new record of $1.75 trillion in 2024, marking a 6.6% growth in underlying terms. This impressive achievement reflects solid growth across several regions, with major contributions from companies in the US, Japan, and emerging markets like India and China. Notably, large companies making their first-ever dividend payments played a key role in driving this growth.
Key takeaways
- Global dividends reached 1.75 trillion in 2024, an increase of 6.6% in underlying terms.
- Overall, they grew by 5.2%, due to lower extraordinary dividends and a stronger dollar.
- Record dividends were paid in 17 of the 49 countries that make up our index, including top payers such as the United States, Canada, France, Japan and China.
- Large companies paying dividends for the first time had a disproportionate impact. Meta, Alphabet and Alibaba alone accounted for one-fifth of global dividend growth in 2024.
- Globally, 88% of companies either increased their dividends or kept them stable in 2024.
- In the fourth quarter, payouts rose by 7.3% at an underlying rate.
- The forecast for 2025 is for the overall rate to grow by 5.0% to a record $1.83 trillion, while the underlying rate is projected to grow by 5.1%.
Dividend Growth Across Key Regions and Markets
The global dividend payout in 2024 surpassed Janus Henderson's forecast, driven by strong performance in the US and Japan. Record dividends were paid out in 17 of the 49 countries tracked in Janus Henderson’s Global Dividend Index. The US, Canada, France, Japan, and China were some of the largest contributors to this growth, alongside key emerging markets such as India, Singapore, and South Korea. The fourth-quarter results were particularly impressive, with underlying payouts rising by 7.3%.
The Role of Large Companies and Sectors Driving Growth
Meta, Alphabet, and Alibaba were major contributors, paying out $15.1 billion in dividends and accounting for 20% of global dividend growth in 2024. Sector-wise, the financial sector led the charge, with banks boosting payouts by 12.5%. The media sector also saw strong growth, driven by the dividend payouts from Meta and Alphabet. Other sectors like telecommunications, construction, insurance, and consumer durables also recorded healthy double-digit increases. However, mining and transportation lagged behind, contributing $26 billion less than the previous year.
Looking ahead, Janus Henderson forecasts a further 5.0% increase in global dividends for 2025, expecting total payouts to reach $1.83 trillion. With dividend growth expected to remain resilient despite economic uncertainties, 2025 is set to see another record year for global dividends.
Several of the world's most valuable companies, particularly those with their roots in the US technology sector, are making their first dividend payouts, contrary to the belief that this group of firms would avoid this form of returning capital to shareholders. By doing so, they demonstrate that they are like other successful companies before them in that, as they mature, they begin to generate cash surpluses that can be returned to their investors. These are the companies that are currently providing significant impetus to global dividend growth.
Overall, 2025 looks set to be an uncertain year for the global economy. The global economy is expected to continue to grow at a reasonable pace, although the risk of tariffs and the possibility of trade wars, together with the high level of public debt in many large economies, could lead to greater volatility in 2025. Indeed, yields in some bond markets have risen to levels not seen for several years. Moreover, higher interest rates affect investment, slow long-term earnings growth and increase financing costs, which have an impact on corporate profitability. That said, the market continues to expect corporate earnings to rise this year and the consensus forecast is for a rise of more than 10%. While this may err on the side of optimism in the face of the world's current economic and geopolitical challenges, the good news for income focused investors is that dividends tend to be more resilient than earnings over the economic cycle. Companies decide how much to distribute to shareholders, so there is much less variability in dividend income streams. For this reason, we expect dividends to reach a new record high this year.
Jane Shoemake, Client Portfolio Manager in the Global Equity Income team at Janus Henderson
