Decline in China and Europe
In contrast, dividends in China fell by 2.1% for the entire 2015 probably payments to shareholders in Chinese companies will decrease. Dividends in the UK and continental Europe were also disappointing and decreased by 1.5 and 13.1 percent for the quarter.
"Developed markets recorded the best growth amid the recovery of the financial markets and the increased confidence of consumers," said Alex Crooke, head of equity trading at Henderson Global Investors. But he points out that the slowdown in China comes earlier than expected, which is a healthy reminder to investors that the rapid growth of dividends is impossible to be maintained indefinitely. Over the past six years dividends in China have almost tripled.
The impressive performance of the United States is partly due to the special dividend of food group Kraft worth 9.8 bln. Dollars, which is responsible for nearly half growth. The increase in dividends should act encouraging investors after the financial results of the corporate sector in the third quarter showed a disappointing drop in profit and revenue.
"The US is far ahead of the other and push the growth of dividends at breakneck speed," says Alex Crook. "The overall picture in all developed markets is encouraging despite falling currencies and weak growth in regions such as Europe. Currency effects tend to cancel out in the long run, so investors should not be worried about the current movements in exchange rates," he added .
The slowdown in China creates more worries as companies there are binding directly dividends profits. This means that unlike most developed markets, payments to shareholders are not supported in difficult times.
Henderson analysts predict that full-year dividend worldwide will reach 1.15 trillion. dollar, down 2% compared with 2014 Excluding foreign exchange reserves, special dividends and other one-off factors, however, expect growth of 9.5%.