Global dividends increased by 6.6% y-o-y to reach USD 1.8 tn in 2024, according to the latest edition of asset manager Janus Henderson ’s Global Dividend Index (pdf). On a quarterly basis, dividends were up by 7.3% in 4Q 2024.

Big payouts from Meta, Alphabet, and Alibaba drove one-fifth of global dividend growth. Alibaba’s USD 5.1 bn payout helped lift China’s total to a record USD 62.7 bn.

The world’s largest dividend payers in 2024, ranked by total payouts, were Microsoft, Exxon Mobil, HSBC, Apple, China Construction Bank, PetroChina, China Mobile, JPMorgan Chase, Chevron, and Johnson & Johnson. Together, they distributed USD 145.9 bn in dividends

Growth by sector: While dividend growth was broad-based, the financial sector led the way, with banking dividends rising USD 36.4 bn, aided by one-off special payments. Other sectors, including telecoms, construction, insurance, consumer durables, and leisure, saw gains exceeding 10%. Media companies, led by Meta and Alphabet, doubled their dividends, while Alibaba bolstered retail payouts. On the downside, mining and transport experienced a combined USD 26 bn drop, and dividends in the oil, gas, and energy sector declined by 4.1% to USD 166.2 bn.

The US led global distributions with payouts reaching USD 651.7 bn, followed by the UK with USD 90.6 bn and Japan with USD 86.0 bn.

Emerging markets saw a 9% increase in payouts y-o-y, driven by record distributions of USD 62.7 bn from China and USD 30.6 bn from India. Saudi Arabia contributed USD 16.9 bn.

Dividends to rise this year: The firm expects dividends to rise 5% to USD 1.83 tn in 2025, though a stronger USD may weigh on headline growth. The Trump administration could boost US firms but also heighten inflation risks, potentially triggering market volatility. However, corporate earnings are still expected to grow by over 10%.

MARKETS THIS MORNING-

Asian markets are tracking Wall Street losses, with the Nikkei down 1.8% after Japan saw bond yields rise to a high not seen since the 2008 financial crisis. South Korean and Chinese indexes are also down. Over on Wall Street, futures are pointing to a stronger open after US President Donald Trump pulled back further from his aggressive trade policy.

ADX

9,533

-0.3% (YTD: +1.2%)

DFM

5,274

-0.7% (YTD: +2.2%)

Nasdaq Dubai UAE20

4,338

-0.8% (YTD: +4.2%)

USD : AED CBUAE

Buy 3.67

Sell 3.67

EIBOR

4.2% o/n

4.4% 1 yr

TASI

11,811

-0.7% (YTD: -2.0%)

EGX30

30,947

+0.2% (YTD: +4.1%)

S&P 500

5,739

-1.8% (YTD: -2.4%)

FTSE 100

8,683

-0.8% (YTD: +6.2%)

Euro Stoxx 50

5,521

+0.6% (YTD: +12.8%)

Brent crude

USD 69.46

+0.2%

Natural gas (Nymex)

USD 4.27

-0.7%

Gold

USD 2,917.40

-0.3%

BTC

USD 90,542

+0.4% (YTD: -4.1%)

THE CLOSING BELL-

The ADX fell 0.3% yesterday on turnover of AED 1.2 bn. The index is up 1.2% YTD.

In the green: Union Ins. (+14.9%), Sharjah Cement and Industrial Development (+4.5%) and Hayah Ins. (3.8%).

In the red: Adnoc Drilling (-6.0%), Borouge (-4.0%) and Lulu Retail Holdings (-3.7%).

Over on the DFM, the index fell 0.7% on turnover of AED 561.4 mn. Nasdaq Dubai was down 0.8%, and up 4.2% YTD.

CORPORATE ACTIONS-

Shareholders of ADX-listed United Arab Bank (UAB) signed off on the company’s AED 1.03 bn rights issue, which would see the company increase its capital to AED 3.09 bn, it said in a filing (pdf) to the bourse. This is in a bid to shore up the lender’s financial position and boost its growth plans. UAB’s share price closed down 0.72% yesterday to trade at AED 1.38.

Dubai Ins. is proposing the distribution of 80% of its capital as dividends during its board meeting, according to a DFM disclosure (pdf). The decision is pending the approval of the company’s shareholders at the annual general meeting.

NMDC Energy will distribute an AED 700 mn dividend for 2024 on 4 April, equivalent to 14 fils per share, following the approval of its shareholders at the annual general meeting, according to an ADX disclosure (pdf).

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