Global dividend income hits new record of $1.167 trillion

The total dividend income paid to shareholders around the world rose by 11% last year to $1.167 trillion, according to investment firm Henderson Global Investors.

The biggest increase in cash payouts came from US firms at $52bn.
Henderson said global dividends would rise by just 1% this year because of lower oil prices and slowing economies.

Another factor acting as a drag on dividends would be the recent rise in the value of the dollar, the firm said.
This will depress the value of dividend income from around the world once it has been translated into the US currency.
"2014 was a superb year for income investors, with developed markets leading the charge," said Alex Crooke at Henderson Global Investors.
"After such a strong performance in 2014, we now expect a pause for breath in 2015."
Compounding growth About one-third of global dividend income came from firms on the US stock market.
In 2014, dividend changes varied considerably from region to region:

• North America - up 15% to $392bn

• Europe excluding UK - up 12% to $229bn

• Emerging markets - down 12% to $114bn

• UK - up 31% to $135bn

• Asia Pacific - up 3% to $116bn

• Japan - up 6% to $49bn

• Companies outside the top 1,200 - up 11% to $132bn

• Total - up 11% to $1.167tn.

Global dividend income has now risen by 60% in the five years since 2009, far outstripping inflation and savers' interest rates in the UK, and also the growth of economies around the world.
That underlines the vital importance to investors of dividend income, especially when share prices have stagnated, as reinvesting the dividends increases the value of a shareholding in a similar fashion to compound interest.