World’s big firms significantly increase first quarter dividend payments

Figures compiled by fund management giant Janus Henderson showed that a decline in special, one-off dividends resulted in the overall level of shareholder payments slip 0.3 per cent to $218.7 billion (£169 billion) in the first three months of 2017.

However, with specials stripped out, the underlying growth hit 5.4 per cent, its fastest pace since the end of 2015.

The latest Janus Henderson global dividend index cited growth in the global economy as the catalyst to profits at the top 1,200 companies by stock market capitalisation, which together paid out $215.1 billion in the first three months without counting special dividends.

Total dividend payments in the UK fell by 5.3 per cent in dollar terms, to $15.5bn compared with $16.4bn.

However, taking into account the effect of the fall in the value of the pound, changes in the composition of the top 1,200, and special dividends payments increased by seven per cent.

The quarter’s notable features included a 17 per cent increase in dividend payments by big banks in the US.

Janus Henderson, which was created by the merger last month of Janus Capital of the US with Henderson Group in the UK last month, said: “The US banking sector, which used to be the richest source of US dividends before the financial crisis, is once again increasing payouts sharply, and catching up with the oil sector that has battled lower oil prices over the last two years.”