Mexican dividends increased 4.3%, despite cuts made by half of the companies in the index. The largest contributors to the growth came from FEMSA and Grupo México.
Global dividends will reach a record US$1.75 trillion in 2024, according to the Global Dividend Report by global asset manager Janus Henderson. This amount represents a 6.6% annual increase in underlying terms.
Global growth, at 5.2%, reflected a reduction in extraordinary dividends and a stronger dollar. However, it exceeded Janus Henderson's forecast of US$1.73 trillion, mainly due to higher dividends in the United States and Japan in the fourth quarter.
Dividend growth throughout the year was solid in Europe, the United States, Japan, and key emerging markets such as India, Singapore, and South Korea. Records were set in 17 of the 49 countries, including the United States, Canada, France, Japan, and China.
MEXICO AND LATIN AMERICA
Mexican dividends rose 4.3%, despite cuts made by half of the companies in the index. The largest contributors to growth came from FEMSA and Grupo México. A strong boost in the fourth quarter (32.8%) impacted the annual result.
In the region, the 9% drop in Brazilian dividends stood out, with cuts by half of the companies in the index. A large drop in Colombia reflected a cut in payouts by Ecopetrol, its only company in the index. Chile saw a 28.7% drop due to the cut made by Copec.
DISPROPORTIONATE IMPULSE
Major tech companies made their first dividend payments, and they had a "disproportionate" impact on the dividend, Janus noted. The largest were Meta, Alphabet, and China's Alibaba, distributing US$15.1 billion, or a fifth of the growth.
From a sector perspective, almost half of the growth came from financial services, particularly banks, where payments grew 12.5% on an underlying basis. Media also saw strong growth, thanks to payments from Meta and Alphabet.
For the second year in a row, technology giant Microsoft was the company that paid the most dividends in the world. Also notable was Exxon, which recently expanded after its acquisition of Pioneer Resources, rising to second place for the first time since 2016.
THEY FORECAST MORE GROWTH
For Janus Henderson, 2025 is shaping up to be an uncertain year for the global economy, due to the risk of tariffs and the high level of public debt in major economies. However, he forecasts dividends will grow 5% this year to US$1.83 trillion.
"Some of the world's most valuable companies, particularly in the US technology sector, are starting to pay dividends," said Christian Constandse, Country Head of Janus Henderson Mexico. "They're giving dividend growth a significant boost."
