Forecast : Dividend Growth globally in year 2022 and 2023


Dividend is something catch traditional value lover investors eyes, With interest rate on rise it can attract more investors in coming years. But the growth started to slowing down in dividend payment before Russia decided to invade Ukraine in 2022 Feb.

This slowing growth got more hurdles from inflationary input prices and economic sanctions. While total corporate payouts rose almost 17 % in 2021, dividend increases in 2022 were expected to be limited to 3% before Russia’s attack on Ukraine, according to the Janus Henderson Global Dividend Index, a widely-followed report on payouts. Now this forecast may have to be trimmed further.

In their exact words “The impact of the crisis will vary according to the sector and company with some being more impacted than others by sanctions and rising input prices,

Though world investors takes time to gauge the economic fallout from the conflict impact in area of energy( oil and gas ) is very likely.

Global dividends hit a record $1.47trillion last year, staging a full recovery from the sharp cuts to payouts during the worst of the Covid-19 pandemic.

Total corporate payouts to shareholders rebounded in 2021 from the depressed levels recorded the year before, when many companies held on to their cash to weather the initial economic impact of the Covid-19 pandemic.

While payout of dividend shown varying based on industry, Mining companies paid double their previous record level of dividends, set in 2019. Miners, along with banks, delivered three-fifths of the increase to payouts last year.

Column chart of Corporate payouts hit record level in 2021 showing Global dividends recover from Covid-19 cuts
Global Dividend Payout Chart

On other side of the world , UK market up their dividends by 44 % from the year before. However, the UK recovery came from a base of particularly severe cuts during 2020, leaving payouts still lagging behind pre-pandemic levels.

Other than Dividend UK market remains one of the most attractive market in Europe as of 2022.

So what does all this means for your dividend portfolio ?

To meet their dividend promises companies needs to rely on their revenue increase, With Rising inflation and soon interest rates. we are hopeful for good dividend payment from below sectors

Mining , Energy , Consumer and Agriculture .