Companies to pay out more than $1.4 trillion in dividends in 2021, a new record

A record that could have been beat in 2022. In all, $1,470 billion in dividends was paid out by companies to shareholders in 2021. Unprecedented figures, fueled by a rebound in the global economy and extraordinary profits from mining companies, according to a report published by asset manager Janus Henderson on Tuesday, March 1. The dividend increased by 16.7% compared to 2020 and 3.2% compared to the previous record, dating from 2019.

“The last two years have been exceptional, with a sharp drop and then a spectacular rally. Today, it seems we are back on a long-term growth momentum”, Summaries AFP Jane Shomek, portfolio manager at Janus Henderson.

The dynamics of 2021 affected all sectors: nine out of ten companies increased or kept their dividends. Mining companies have been particularly strong, with dividend payments of nearly $100 billion. These groups’ exceptional profits in 2021, driven by rising commodity prices, enabled them to double their dividends compared to their previous record year 2019.

Symbolizing this rebound, it is the Anglo-Australian mining company BHP that has paid the highest dividends according to the rankings. It surpasses Microsoft, which has dropped to second place in 2021. Three other mining companies occupy the top 10 of the ranking: Rio Tinto (3rd listed in London as BHP), Brazilian Vale (8th) and Australian Fortescue Metal (10th). Along with this region, the United Kingdom was one of the regions in the world where dividend growth was strongest. But the United States still focuses on the 44% dividend worldwide.

Another highly represented area is technology. It was a big winner from the economic consequences of the pandemic, which was felt in companies in the sector booming profits and then their dividends. Besides Microsoft, Samsung and Apple are among the ten largest dividend payers in the world.

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About the Author: Forrest Morton

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