From todays Barron’s, “ Dividend payments from U.S. firms rose 5.1% in 2023 to a record $602.1 billion, according to research from money management firm Janus Henderson Global. And it wasn’t just in America—boosting dividends was a global phenomenon with worldwide payouts rising 5% to an all-time high of $1.66 trillion.

Microsoft paid the largest dividend of any company on the planet, doling out $20.7 billion in cash to shareholders last year. Microsoft 2.66% was the biggest dividend payer in 2020 as well, but slipped to second place in 2021 and third place in 2022.
Apple paid the second-biggest dividend in 2023, for a total of $14.9 billion. Exxon Mobil, China Construction Bank Corp., and PetroChina rounded out the top five dividend payers. Australian mining giant BHP, which had paid the largest dividend in 2021 and 2022, tumbled to sixth in the 2023 rankings.
Mega banks, such as HSBC, which resumed a quarterly dividend in May 2023 for the first time in four years, and JPMorgan Chase, were a big part of the global dividend story as well. Janus Henderson said the banking sector enjoyed record payouts last year, and contributed to half of the world’s overall dividend growth.
What’s Next: So what lies ahead for 2024? Probably even more dividend increases. Janus Henderson said it expects another 5% jump in global payouts, to a fresh record of $1.72 trillion this year. “Strong dividend growth in the U.S. during the fourth quarter of 2023 coupled with healthy corporate balance sheets bode well for future dividend growth,” said Amber Milam, client portfolio manager at Janus Henderson, in the report.

—Paul R. La Monica“