- Australia has established a new dividend record in 2021, with banks and miners driving a big recovery from a difficult 2020
- Nine out of 10 Australian companies raised dividends in 2021, according to the latest Janus Henderson Global Dividend Index report
- Growth was quickest in countries that had the greatest decreases in 2020 the report noted, assisting Australia in setting a new dividend payout record of $87.1 billion in 2021
- BHP led the way, with the world’s highest ever mining payout of $17.2 billion, while competitor Fortescue Metals trailed closely behind, releasing $15.9 billion to shareholders
Australia has established a new dividend record in 2021, with banks and miners driving a big recovery from a difficult 2020.
According to the most recent Janus Henderson Global Dividend Index, global dividends recovered significantly in 2021, making up for the reduction during the early days of the pandemic in 2020.
Nine out of every 10 Australian companies raised dividends in 2021.
On an underlying basis, global dividends increased by 14.7 per cent, hitting a new high of $2.02 trillion.
Growth was quickest in countries that had the greatest decreases in 2020 the report noted, assisting Australia in setting a new dividend payout record of $87.1 billion in 2021.
Banks’ dividends increased by 40 per cent, or $69.5 billion globally, pushed by returning payouts to more typical levels when dividend distribution limits were lifted in 2020.
The impact was noticeable in Australia, where banks restored dividends to investors after APRA lifted dividend rules in 2021, accounting for one-third of the country’s headline growth in payouts last year.
APRA dumped the COVID-19 restriction for banks to cap shareholder payouts at 50 per cent of profits in late 2020.
Reflecting the rising commodity prices, Australian miners maintained their strong pace, releasing record sums of cash in a combination of normal and special dividends.
BHP led the way, paying the world’s highest ever mining payout of $17.2 billion, while competitor Fortescue Metals trailed closely behind, releasing $15.9 billion to shareholders.
The global asset management group, Janus Henderson, has raised its full-year projection because of the strength of Q4 payment data and stronger expectations for 2022.
Janus Henderson forecasts global dividends to reach a new high of $2.09 trillion in 2022, an increase of 3.1 per cent on a headline basis and 5.7 per cent in fundamental terms.