US stock dividends have slowed for six consecutive quarters. What level are Microsoft and Apple at?

UK fund manager Janus Henderson said in a quarterly survey of the world's 1,200 largest listed companies that 88% of them increased or maintained their dividends during this period.

In the second quarter, global dividends grew by 4.9% to a record $568 billion, but the growth rate of US company dividends slowed for the sixth consecutive quarter after some well-known technology and financial groups reduced their payouts.

Global dividends continue to grow, but US companies slow down

Despite expectations of a slowdown in global economic activity, Janus Henderson maintains its forecast that dividends will reach a record $1.64 trillion in 2023, representing a 5% underlying growth.

"As interest rates rise, global economic growth is slowing. The market currently expects global profits to plateau this year after soaring to record highs in 2022, and when we talk to companies around the world, they are now more cautious about the outlook," said Ben Lofthouse, Global Equity Income Director at Janus.

However, he added, "The characteristic of dividends is that they are usually much less volatile than earnings."

The banking sector contributed half of the total dividend growth in the second quarter, increasing by 19.7% to a record $85.3 billion, and Lofthouse expects this trend to continue.

However, US companies have limited the overall growth of dividends, with total dividends increasing by 2.6% to $148 billion due to a reduction in one-time special dividends.

Which companies have the most volatile dividends?

The two companies that cut dividends the most were Intel and Blackstone. The former decided to reduce all of its expenses, including dividends, while the latter adjusted its payouts due to a significant decline in profits caused by a decrease in the valuation of private assets.

The healthcare industry saw the largest growth in dividends, with companies like UnitedHealth and Eli Lilly driving the growth.

The recovery of dividend payments by HSBC Bank has increased the contribution of the banking sector.

Outside of the UK, Europe had the fastest dividend growth among all regions, increasing by 9.7% to $184.5 billion, driven by banks and automakers.

The list of the world's largest dividend payers is still dominated by multinational companies headquartered in Europe, with Microsoft, Apple, and ExxonMobil ranking seventh, seventeenth, and nineteenth, respectively.