Declared dividends are expected to increase 10 percent globally this year to approximately $1.65 trillion, representing the highest level of annual growth since 2014, according to a new report from business information provider IHS Markit (Nasdaq: INFO).
“Our positive global forecast is based on a bottom-up analysis of more than 7,500 companies, which collectively show an encouraging economic outlook,” said Thomas Matheson, head of dividend research at IHS Markit. “In 2018, we expect to see stronger performance across sectors, coupled with resurgent growth in Europe and a notable decrease in dividend cuts.”
On a sector basis, the IHS Markit Dividend Forecasting report predicts that banks are expected to post the largest increase in gross payouts in 2018 when compared with last year (up $26.1bn), followed by industrial goods and services (up $12.6bn), and technology (up $12.6bn). In terms of dividend growth percentage, basic resources is expected to lead (16 percent), followed by construction and materials (14 percent) and technology (13 percent).
Emerging markets are projected to outperform developed markets in dividend growth. Among emerging markets, the Americas is expected to lead (17 percent), followed by Asia (12 percent) and EMEA (12 percent). The Eurozone is expected to lead in developed markets (15 percent), followed by APAC (10 percent).
In addition to these forecasts, the report also reveals:
- Banks are expected to make the largest overall contribution ($258 billion) to aggregate global dividends.
- Despite Brexit, the UK is expected to increase dividends by 10 percent.
- US dividend growth is expected to remain around 8 percent, slightly below the 2017 benchmark.
- While minimal, anticipated dividend cuts vary across regions as a result of stock-specific factors.
For the full 2018 IHS Markit Dividend Forecasting report, please contact firstname.lastname@example.org.
About IHS Markit (www.ihsmarkit.com)
IHS Markit (Nasdaq: INFO) is a world leader in critical information, analytics and solutions for the major industries and markets that drive economies worldwide. The company delivers next-generation information, analytics and solutions to customers in business, finance and government, improving their operational efficiency and providing deep insights that lead to well-informed, confident decisions. IHS Markit has more than 50,000 key business and government customers, including 85 percent of the Fortune Global 500 and the world’s leading financial institutions. Headquartered in London, IHS Markit is committed to sustainable, profitable growth.
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