This drop is expected as the coronavirus pandemic wreaks havoc on the global economy and companies face major financial problems due to the worldwide lockdown measures implemented.

Dividends in the first quarter of this year were almost entirely unaffected by the outbreak of the virus, with dividends rising by 3.6% to a Q1 record of $275.4 billion, according to the index, however it is expected that the impact of COVID-19 will be felt throughout the rest of the year.

Janus Henderson said it is withdrawing its annual estimate and has a range based on a best and worst-case scenario as a guide to how 2020 may look. The firm’s best-case scenario highlights only those dividend cust which have already been announced by companies or those which are very likely to be announced.

The best-case scenario sees a decline in global dividends of 15% this year to $1.21 trillion, marking a drop of $213 billion. However, the worst-case scenario sees a decline of 35% this year to $933bn.

Ben Lofthouse, co-manager at Janus Henderson, said: “This downturn does look likely to be very steep, but the support of the governments and central banks has been on an unprecedented scale, which we can only hope will make any recovery swift.”

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