Dividend growth slows in second quarter

Dividend growth slows in second quarter

New data from Henderson Global Investors shows a slowdown in dividend growth globally, prompting the investment firm to revise down its yearly underlying dividend payout forecast by 1.4 per cent.


Taken from the Henderson Global Dividend Index, the data shows global underlying dividends rose by 1.2 per cent, after dividend growth slowed to the same factor from last quarter’s 3.1 per cent.

Henderson Global Investors said the data “reinforced the need for Australian investors to seek income in offshore markets” after underlying dividends for the country fell by 0.2 per cent.

Henderson noted that Australia’s biggest payer, the Commonwealth Bank, held its payouts flat from last year.

Slowing growth in Australia, the UK, and emerging markets is likely to result in more slow growth in the second half of the year, the firm said, as “seasonal patterns mean the emphasis shifts slightly towards those parts of the world”.

Henderson Global Investors also noted that the significant slowdown in US dividends – which at 4.6 per cent for the second quarter represents its slowest since 2013 – should not be viewed as problematic, with Henderson's head of global equity income, Alex Crooke, saying that this marks a stabilisation in the nation's dividend growth.

“The slowdown in US dividend growth is not a cause for concern; it began late last year but should be considered a normalisation to more sustainable levels of dividend growth after several quarters of double digit increases,” Mr Crooke said.

Read more:

GBST profit down 39% to $9.3m

Retirees shifting towards income streams

NZ Super awards new mandates

First State Super awards $1.6 billion mandate

Australians lacking confidence in super: MLC

Related Articles

 

Dividend growth slows in second quarter
investordaily image
ID logo
promoted stories

Appointments

Karen McKeown

Local Government Super appoints director

Reporter

Neil Cochrane

First State Super CEO to retire

Reporter

Pally Bargri

AMP chief risk officer for advice departs

Killian Plastow

Analysis

investordaily image

Corporate governance and advocacy in China

Therese Niklasson

Dug Higgins

The shifting LIC landscape

Dug Higgins

investordaily image

The perils of chasing niche infrastructure

Frithjof van Zyp