Dividends hit a record. Thank Disney and Meta Platforms.

  • By Paul R. La Monica,
  • Barron's
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Cue the famous line from “Jerry Maguire.” Corporate America is showing investors the money.

Dividend payments from U.S. companies hit a new record of $164.3 billion in the first quarter, up 7% from a year ago, according to the latest Janus Henderson Global Dividend Index released Thursday morning.

Blue chip American companies are flush with cash and more than willing to dole some of it out to investors. Tech giants Microsoft () and Apple () are big dividend payers, as are fellow Dow Jones Industrial Average () components JPMorgan Chase (), Chevron (), Johnson & Johnson (), and Verizon (). Costco Wholesale () was also a dividend darling, thanks to a one-time special dividend of $15 a share (about $6.7 billion in total) that it paid in January, in addition to its regular payout.

“Dividend growth in the U.S. remains remarkably resilient as companies seek to find a balance between capital expenditures, financing needs, and shareholder returns via dividends and buybacks in this higher interest rate environment,” said Amber Milam, client portfolio manager at Janus Henderson, in a news release about the report.

But there were also some new (and in one case, old) names that joined the dividend club for the quarter. Walt Disney () —which suspended its dividend in 2020 to preserve cash during the height of the Covid-19 pandemic—announced last December that it was reinstating its semiannual dividend. The House of Mouse paid out 30 cents per share to shareholders in January.

Facebook and Instagram owner Meta Platforms () and wireless telecom giant T-Mobile () also announced their first-ever shareholder payouts over the past year. Meta began paying one in late March, which amounted to about $1.3 billion for its shareholders.

T-Mobile’s first dividend came in the 2023 fourth quarter, the payouts totaling $747 million. T-Mobile issued another dividend payment of $769 million in the first quarter, and it has indicated it hopes to boost its payout by about 10% annually. T-Mobile’s dividend now yields 1.6%. The company still has a long ways to go before it catches up to rivals AT&T () and Verizon Communications, which both boast dividend yields above 6%.

On a global basis, dividends rose 2.4% to a fresh record of $339.2 billion in the first quarter. European pharma giants Novartis () and Roche () ranked as the largest dividend payers globally in the period, with payments of $8.6 billion and $7.6 billion, respectively. (Microsoft and Apple, which had paid the most in dividends for 2023, slid to fourth and eighth place, respectively.)

Chinese e-commerce and cloud giant Alibaba Group Holding also made its debut on the Janus Henderson dividend list, ranking 20th with a payout of just under $2.6 billion. Alibaba (), like Meta and T-Mobile, recently initiated a dividend.

Investors should get used to higher dividends. Google owner Alphabet () announced a dividend program earlier this year. Its first payout comes in June. Wall Street is cheering dividend stocks lately, too. The SPDR S&P Dividend () and Schwab U.S. Dividend Equity () exchange-traded funds have both risen 11% over the past six months.

Janus Henderson noted that thanks to rising corporate profits, nearly all dividend-paying U.S. companies either raised or maintained their shareholder payouts over the past year. The one notable exception was struggling pharmacy chain Walgreens Boots Alliance (). (Walgreens was replaced in the Dow this year by Amazon.com (), which doesn’t pay a dividend.)

Overall, Janus Henderson continues to expect global dividend payments to rise 5% this year, to a record of $1.72 trillion. Show me the money indeed.

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