Table of Contents
- 1 Meta and Alphabet ensure record results
- 2 The world’s largest dividend payers in the third quarter of 2024:
- 3 Auto suppliers are top dividend payers in Germany
- 4 **Purpose:** What are the main arguments presented by Dr. Miller and Mr. Jenkins regarding the sustainability of the current dividend boom?
Companies worldwide paid record dividends in the third quarter, reports the “Handelsblatt“. A total of 431 billion dollars (the equivalent of around 409 million euros) flowed to shareholders. The investment company Janus Henderson forecasts distributions of 1.73 trillion dollars (the equivalent of around 1.64 trillion euros) for 2024.
Banks and IT and media companies have significantly driven dividend growth. JPMorgan Chase, for example, is not the only bank among the largest dividend payers. The Commonwealth Bank and the National Bank from Australia are also in the top 20.
Meta and Alphabet ensure record results
The first-time dividend payments of Alphabet and Meta also contributed to the record result. Companies that paid dividends for the first time this year accounted for more than a sixth of the growth adjusted for special dividends.
But there are also brakes: Large companies such as Evergreen Marine and Yankuang Energy have sharply cut their dividends, reports “Stock check“. Swiss commodities trader Glencore and British mining giant Anglo American also paid out less.
The world’s largest dividend payers in the third quarter of 2024:
- China Construction Bank, $13.5 billion
- China Mobile, $6.9 billion
- Petro China, $6.8 billion
- Microsoft, $5.6 billion
- Alibaba, $4.3 billion
- Commonwealth Bank, 4,1 Milliarden Dollar
- Apple, $3.8 billion
- Cnooc, $3.8 billion
- Exxon Mobil, $3.7 billion
- Industrial Bank of China $3.7 billion
Auto suppliers are top dividend payers in Germany
The highest dividend from a German company is expected from the automotive supplier Vitesco in 2024. With an (expected) annual dividend of 0.25 euros, according to the platform, “extraETF“A dividend yield of 0.48 percent at the current share price.
In addition to Vitesco, other German companies also pay out high dividends. To the largest payers in Germany include Mercedes Benz, Volkswagen and BMW, among others. However, they cannot compete with the best dividend payers in the world.
**Purpose:** What are the main arguments presented by Dr. Miller and Mr. Jenkins regarding the sustainability of the current dividend boom?
## World Today News: Dividend Dilemma – A Global Perspective
**Interviewer:** Welcome to World Today News, where we dissect the latest financial trends shaping our global economy. Today we delve into the record-breaking dividend payouts seen in the third quarter, a phenomenon that raises both excitement and concerns. Joining us are two distinguished guests:
* **Dr. Janet Miller**, Professor of Finance at the London School of Economics, specializing in corporate payouts and shareholder value.
* **Mr. Mark Jenkins**, CEO of Global Investment Strategies, with a focus on emerging markets and dividend investing.
Welcome to both of you.
**Section 1: The Boom in Dividends**
**Interviewer:** Dr. Miller, we are witnessing a surge in dividends globally. What factors are driving this trend? Is it simply a reflection of robust corporate profits, or are there deeper underlying forces at play?
**Dr. Miller:** Thank you for having me. Indeed, the third-quarter figures are remarkable, but the reasons behind this dividend boom are multifaceted.
**Interviewer:** Mr. Jenkins, what is your take on this? From an investment perspective, does this rapid increase in dividends paint an optimistic picture, or should investors exercise caution?
**Mr. Jenkins:** Interesting question. While higher dividends can seem attractive, investors need to look beyond the raw numbers. What are the underlying fundamentals driving these payouts?
**Section 2: The Sector Breakdown**
**Interviewer:** The article highlights specific sectors, such as banks, IT, and media giants, as major contributors to this dividend surge. Dr. Miller, is this concentration of dividend growth in particular sectors a cause for concern, or does it reflect natural market trends?
**Dr. Miller:** It’s certainly an interesting pattern. We need to analyze specific company behavior within each sector – are they healthy and sustainable, or are there underlying vulnerabilities driving these payouts?
**Interviewer:** Mr. Jenkins, how do you see this sector-specific dividend growth playing out for investors in the long term? Should investors focus on diversifying across sectors, or are there specific sectors offering better prospects?
**Mr. Jenkins:** Diversification is always key, but understanding the future prospects of specific sectors is crucial.
**Section 3: The Divergence within Industries:**
**Interviewer:** The article also mentions companies like PPC and others who have slashed their dividends. Dr. Miller, what factors might be contributing to this contrasting trend within industries, and what implications does it hold for investors?
**Dr. Miller:** This divergence highlights the importance of careful company-specific analysis. Looking beyond generalized trends and understanding individual company dynamics is crucial.
**Interviewer:** Mr. Jenkins, how do you advise investors to navigate this uneven landscape of dividend payments? Are there red flags investors should watch out for when evaluating dividend-paying companies?
**Mr. Jenkins:** Always look behind the dividend yield. Understand the company’s financial health, growth prospects, and dividend sustainability plan.
**Section 4: The Outlook for 2024 and Beyond**
**Interviewer:** Looking ahead, Janus Henderson forecasts a staggering 1.73 trillion dollars in dividends for 2024. Dr. Miller, is this projection realistic, or are there headwinds that could dampen this dividend growth?
**Dr. Miller:** Predictions are always subject to change, but several factors could influence dividend payouts in the coming year.
**Interviewer:** Mr. Jenkins, what are your insights on the future of dividends? What are the key factors investors should be watching closely in 2024 and beyond,
**Mr. Jenkins:** The global macroeconomic environment will play a major role, as will individual company performance and investor sentiment.
**Interviewer**: Thank you both for these insightful perspectives on the evolving dividend landscape.
**(closing remarks summarizing key points and thanking guests)**
