The Zhitong Finance App learned that the latest Junli Henderson Global Dividend Index showed that the global dividend performance for the second quarter of 2024 was outstanding. Total global dividend payments rose sharply to a record high of $606.1 billion, with an overall increase of 5.8%. After adjustments were made based on exchange rate fluctuations, particularly the depreciation of the yen, the basic dividend growth rate was outstanding, reaching 8.2%. Despite challenges faced by individual regions, particularly in the Asia-Pacific region, where growth lags behind global growth levels, the overall strong dividend performance highlights the resilience of dividend growth in major global markets.

The basic increase in dividends in the Asia-Pacific region (excluding Japan) was only 1.1%, far behind the global level. Dividend performance in the Asia Pacific region was heavily influenced by seasonal factors. More than one-third of the contribution came from Hong Kong, with a basic dividend growth rate of 1.1% and total dividend expenditure of $14.1 billion. The company that paid the most dividends in Hong Kong was China Mobile (00941), which paid out 6.3 billion US dollars.

Dividend increases in Singapore, South Korea, and Taiwan all reached double digits, led by banks, car manufacturers, and Taiwan Integrated Circuit (TSMC). Dividends from Singapore basically increased by 15.2%, total dividend expenditure of 5 billion US dollars, Korean dividends basically increased by 12.6%, total dividend expenditure of 9.3 billion US dollars, Taiwan dividends basically increased by 27.1%, and total dividend expenditure of 3.9 billion US dollars. The companies that pay the most dividends in these three markets are DBS Group (2.1 billion US dollars), Samsung Electronics (3.1 billion US dollars), and TSMC (2.8 billion US dollars), respectively.

In Australia, the second-quarter dividend was relatively slightly affected by seasonal factors. Although the basic decline in dividends of 24.3% was one of the regions with the biggest decline in the world, this had limited impact on Australia's total dividend payout in 2024. This is due to Woodside Energy (Woodside Energy), which paid the most dividends in the second quarter of 2023. Falling commodity prices, inflationary pressure, and asset depreciation reduced profits. Although Australia's dividend payouts are not expected to increase strongly in the third quarter, the third quarter was a seasonal peak for dividends in the region, and total dividend payouts will also be more resilient. The company that paid the most dividends in the second quarter of 2024 was Westpac Bank (about 3 billion US dollars).

In the second quarter, where seasonal factors were important, the Japanese dividend basically increased by 14.5%. Dividend payments in yen reached a record high, but the weak yen meant that the overall growth rate was only 1.4%, and total dividend payments were $37.2 billion. The company that contributed the most to dividend growth was Toyota Motor Corporation, which is also the largest dividend payer in Japan, and one of the companies that increased the most in dividends after a record profit in the previous fiscal year. Honda Motor's growth contribution is in second place. Both export giants benefited from the weakening yen, which together accounted for two-fifths of the overall dividend growth in the Japanese market. In fact, dividend growth has spread across a wide range of industries, and 90% of Japanese companies have raised or maintained dividend payments.

Dividend payouts recorded strong performance in the second quarter. Coupled with the strong dividend contributions that new companies may bring this year, Junley Henderson raised its 2024 dividend forecast. It is expected that global companies will allocate a record 1.74 trillion dollars for dividends. The total dividend is basically 6.4% higher than the 5.0% forecast in the first quarter report, which is equivalent to an overall increase of 4.7%, higher than the 3.9% forecast earlier.

Sat Duhra, Asia dividend income portfolio manager at Junli Henderson, said that due to the sharp drop in Australian dividends, the overall Asian dividend growth situation was sluggish this quarter and did not fully reflect the significant increase in overall Asian dividends this year. From the perspective of Asian earnings portfolios, we have seen the biggest increase in dividends in Asia in recent years, not only in South Korea and China, but also in growth markets such as India and Indonesia. This shows that companies are increasingly confident of using cash on their balance sheets to pay historically high interest rates. The efforts of governments in individual markets to push for corporate dividends should not be underestimated. Drawing on Japan's experience, these governments will focus on long-term dividend growth, and this initiative has only just begun.