Globally, dividend payments hit a new record high over the quarter with total payouts rising 5.4% to $447.5bn, but the UK lagged behind with the weaker pound dragging down dividends.
Dividends in the UK fell 3.5% on a headline basis to $32.5bn, the only region in the world where the figure fell.
However, the picture may not be all bad as Janus Henderson said: “Once the weak pound, specials and the loss of some UK companies from the index was taken into account, however, UK dividends rose 6.1% in underlying terms. A strong result and better than we had been expecting.”
Other regions such as the US, Japan, Switzerland and South Korea set new quarterly records for dividend payments, and globally the payments grew at the fastest rate since 2015.
Europe dominated in terms of dividend payments over the quarter, accounting for two-fifths of global total with $149.5bn paid out.
The vast majority, 86%, of European companies raised or held their dividends year-on-year.
Alex Crooke, head of global equity income at Janus Henderson, said: “The global economy is very supportive for company profits and dividends at present, and helped drive record payouts in many countries around the world.
“The improvement reflects a normalisation in dividend growth, following two years during which it has been rather subdued.”
The second half of the year looked promising, Crooke said, and expectations of higher dividend payments were high.
Janus Henderson revised its forecast for dividend payments across the whole year up by $50bn to a record $1.208trn, marking growth of 5.5% year-on-year if met.
He added: “Taking a global approach means a slowdown in any one part of the world has less impact on your overall income level, but investors will be pleased they are enjoying one of those periods when there is synchronised underlying dividend growth across all regions of the world.”
