Dividends hit a record. Thank Disney and Meta Platforms.
- By Paul R. La Monica,
- Barron's
- – 05/23/2024
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 (
“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 (
Facebook and Instagram owner Meta Platforms (
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 (
On a global basis, dividends rose 2.4% to a fresh record of $339.2 billion in the first quarter. European pharma giants Novartis (
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 (
Investors should get used to higher dividends. Google owner Alphabet (
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 (
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.