Record Dividends are Energizing These Oil Majors

It’s a good time to be an investor that focuses on dividends. According to the asset management company Janus Henderson, investors enjoyed a record haul for global dividends in the third quarter. Total global payouts hit…

$415.9 billion in the third quarter of 2022.

The seven percent rise from the same period a year ago was fueled by soaring payouts from the energy sector. Without the nearly $20 billion contribution from the oil and gas sector, the global total would have been flat year on year, according to the Janus Henderson Global Dividend index.

“The energy crisis drove a large rise in dividends in the third quarter, as oil companies distributed record profits to shareholders,” the asset manager said in its latest dividend report.

The increase was driven by special dividends – one-time payments which are often larger than normal payouts. And the trend was global, with the biggest dividend jumps coming from energy companies in Brazil, Hong Kong, the U.S. and Canada. Country-wise, the actual largest contributors to dividend growth were the U.S., Hong Kong and Taiwan.

The bumper crop of large dividend payments in the third quarter drove up Janus Henderson’s headline dividend expectations for 2022 by $30 billion to $1.56 trillion, up 8.3% year on year.

2023 Outlook

What’s the outlook for dividends in 2023?

Obviously, the outlook will be dependent on what the global economy does. If we do go into a global recession, companies’ earnings will be impacted. However…

Continue reading at INVESTORSALLEY.com