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"Alphabet and Meta Spark $161.5 Billion Dividend Surge in Q2 as US Firms Reward Shareholders Like Never Before!"

US companies delivered a whopping $161.5 billion in dividends during the second quarter of 2024, representing an 8.6% rise compared to the previous year, as revealed in the latest Janus Henderson Global Dividend Index. The surge was driven by corporate earnings growth and the notable debut of Alphabet and Meta as dividend payers, sending a strong message to investors.

The first-ever dividend distributions by Alphabet, the parent company of Google, and Meta, formerly Facebook, gave the overall US total a substantial 3.6% boost. These tech titans are now joining the ranks of companies that prioritize returning excess cash to shareholders.

Even with interest rates still elevated, most US companies remained stable in their payouts, with 96% either maintaining or increasing dividends compared to the same period last year. One notable exception was 3M, which reduced its dividend for the first time in 64 years following the spinoff of its Solventum business.

On a global scale, dividend payouts also experienced impressive growth, climbing 8.2% to an all-time high of $606.1 billion in Q2. Over 90% of companies worldwide either maintained or increased their dividends, with one-third of industries reporting double-digit growth. Banks were particularly aggressive in returning value to shareholders, responsible for a third of the global year-on-year increase. Insurers, automakers, and telecommunications companies also made significant contributions to the worldwide dividend growth.

Jane Shoemake, a client portfolio manager at Janus Henderson, expressed optimism over the strong global trends despite the challenging economic environment. “We were optimistic for Q2, but the results exceeded expectations, driven by strong performances in the US, Europe, Canada, and Japan,” she said. Companies have shown resilience, continuing to invest in future growth across multiple industries.

As a result of this robust performance, Janus Henderson has upgraded its 2024 global dividend forecast, now predicting a record $1.74 trillion in payouts—a 6.4% rise from 2023.

Shoemake also emphasized the importance of Alphabet, Meta, and China’s Alibaba joining the ranks of dividend payers, calling it a “positive development.” She noted that this move signals a major milestone in these companies’ financial evolution. “As they mature, dividends become a natural route for returning excess cash to shareholders, broadening their appeal to a wider pool of investors, especially those focused on income-generating strategies,” Shoemake added. She expects other tech companies may follow their lead.

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