Dividends paid to shareholders hit a new record: $1.56 trillion in 2022

Companies have “again been generous” to their shareholders by paying them $1.56 billion in dividends in 2022, a new record set in part thanks to oil and gas companies, ahead of a promising 2023 year, according to a study published Wednesday. .

The total amount donated has increased 8.4% compared to 2021, the previous record year thanks to the rebound in the global economy following the COVID-19 health crisis, according to a report by asset manager Janus Henderson identifying the 1,200 larger market capitalizations.

Oil and gas producers and financial companies accounted for half of that growth, according to the manager’s global dividend index.

Thanks to the oil and gas companies.

Due to the increases in energy prices that have inflated their profits, oil and gas producers have “increased their distributions by more than 66%, in the form of ordinary or extraordinary dividends,” specifies the asset manager.

Banks continued to benefit from the reauthorization of dividends, after they were frozen by the European Central Bank at the start of the pandemic: they contributed a quarter of last year’s rise.

The maritime transport sector benefited from the increase in freight rates, the automobile sector from the increase in car prices and the luxury sector from the continuous increase in demand. These last two sectors are the “engine” of dividends in Europe.

In 2021, mining companies were in the spotlight, with four companies in the top 10 entities paying the most dividends. The year 2022 has seen the price of raw materials fall slightly, which has caused its dividends to decrease.

Towards a new record in 2023

Huge corporate profits and dividends paid in 2022, as the global economy falters and inflation stifles purchasing power, has reignited the debate about taxing windfall “super profits.”

The asset manager continues to boast a new record of $1.6 trillion in dividends paid, marking a slower growth of 2.3%.

“Inflation, the scale of further rate hikes and geopolitical risks cloud the horizon,” adds Jane Shoemake.

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