HomeEconomyWorld record dividend in the third quarter thanks to oil

World record dividend in the third quarter thanks to oil

Rising oil dividends led to a 7% rise in global dividends to $415.9 billion, according to a report released Wednesday.

The energy crisis led to a sharp rise in dividends during the third quarter as oil companies distributed record profits to their shareholders, according to Janus Henderson’s quarterly report released Wednesday.

Dividends from oil producers rose 75% to a record $46.4 billion. Without this increase, the world total would have remained flat compared to the previous year, the report specifies.

Fueled by the oil boom, oil companies increased their payouts, mainly through extraordinary dividends rather than an increase in their regular payouts.

almost 1.6 billion

The growth in oil dividends fully offset the reduction in dividends paid to shareholders of mining companies, as a result of the fall in the price of raw materials.

For the full year, Janus Henderson expects dividends to reach $1.56 trillion worldwide, up 8.3% from the record in 2021, which benefited from the rebound in the global economy and windfall gains from mining companies.

However, going into 2023, slowing global economic growth is expected to hit profits and the ability of some companies to increase payments, Henderson said.

Author: GA with AFP
Source: BFM TV

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