US breaks all-time dividend record as investor payments rise

Global dividends reached the first quarter record of $ 263.3 billion, up 7.8% despite worries about the global economy, according to a new study released Monday.

According to the Janus Henderson Global Dividend Index, US dividends reached a record $ 122.5 billion during the period, up 8.3%. Underlying US growth, adjusted for special dividends and foreign exchange, was up 9.6%. Nearly 90% of US companies in the index increased their dividends, the largest increases coming from the banking sector.

Janus Henderson expects a record dividend of $ 1.43 trillion this year, up 4.2%, dominated by North America, where growth is the fastest in the world on an underlying basis .

A dividend is a portion of the profits of a company that is paid as a reward to shareholders. Janus Henderson analyzes the dividends paid by the 1,200 largest companies based on their market capitalization and research began in 2009.

Europe received relatively little dividends paid in the first quarter, with a total growth of 9.2% driven by one-off dividends, while underlying growth of 5.3% was in line with that of 2018. The United Kingdom United underperformed the global average with underlying growth of 4.4%.

The Asia-Pacific region posted the strongest dividend growth since 2009 and year-over-year growth of 14.7% broke the first quarter record.

Global Equity Income manager Ben Lofthouse said in his research that "this reflects the continued strong growth seen in 2018, rather than setting the tone for another year higher than the trend in 2019."

"Market expectations for corporate earnings have moderated in recent months, global economic momentum has slowed and forecasts could fall further," he added.

"Dividends are a late indicator of corporate health, so a reduction in their growth rate is a normal consequence of the slowdown in earnings growth, but we still do not feel the need to change our dividend guidance for 2019. . "

Investors can expect dividend growth of about 4% to 5% in 2019 and a new record year for dividend payments, the report suggests.

The report specifically mentioned that Japan had exceeded the world average over the past five years, with Japanese firms adapting to the dividend culture.

Lofthouse told CNBC's "Squawk Box Europe" on Monday that "the constant growth of the dividend and the indulgence of external shareholders" could indicate a "real change in corporate culture" for Japan.

Emerging markets posted lower growth of 2.2%, which the report attributes to these economies as the first to feel the effects of tighter US monetary policy and fears of global trade.

Pharmaceutical stocks offered the largest payments, with a contribution of $ 1 per $ 8 distributed worldwide. The sector had a record high of $ 30.1 billion, despite an underlying growth rate below the global average.