Global Dividends Reach 1,631 Trillion Won This Year, Recovering to Pre-COVID-19 Levels

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Park Byung-hee] Major foreign media outlets reported on the 23rd (local time), citing a report from the UK asset management firm Janus Henderson, that the global dividend scale this year is expected to approach pre-COVID-19 pandemic levels.

In the report released by Janus Henderson on the same day, it was stated that corporate cash expenditures are recovering faster than expected, and the dividend forecast for this year has been revised upward by 2.2% to $1.39 trillion (approximately 1,631 trillion KRW) from the previous estimate. $1.39 trillion is only 3% less than the record-high dividend amount in 2019.

As the global economy rapidly recovers from the COVID-19 recession this year, corporate dividends are also increasing quickly. Janus Henderson's Global Dividend Index rose by 26.3% in the second quarter of this year.

Jane Shoemaker, Portfolio Manager at Janus Henderson, said, "The total global dividend amount is likely to recover to pre-COVID-19 pandemic levels within 12 months." She added, "Fiscal and monetary policies for economic stimulus will continue," and "Unlike the vulnerable banks during the global financial crisis 10 years ago, dividend recovery will not be hindered."

Corporate dividends significantly decreased last year due to COVID-19, with about half of the reduction attributed to banks. This was because the US, UK, and others restricted bank dividends to prepare for credit crunch risks caused by the COVID-19 recession. However, after stress tests confirmed the capital soundness of banks in the US and UK this year, dividend restrictions were lifted. As a result, major banks have resumed dividends, rapidly increasing the overall dividend scale.

This content was produced with the assistance of AI translation services.