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| Global dividend income hits new record of $1.167 trillion | Global dividend income hits new record of $1.167 trillion |
| (35 minutes later) | |
| 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 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 $50bn. | |
| 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. | 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. | 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. | "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. | "After such a strong performance in 2014, we now expect a pause for breath in 2015. |
| "We don't expect developed market oil companies to reduce their dividends in 2015, but there is a strong likelihood that emerging market producers will pay out markedly less this year as their profitability comes under pressure," he warned. | "We don't expect developed market oil companies to reduce their dividends in 2015, but there is a strong likelihood that emerging market producers will pay out markedly less this year as their profitability comes under pressure," he warned. |
| Compounding growth | Compounding growth |
| The US accounts for about one-third of global dividend payments to share investors. | The US accounts for about one-third of global dividend payments to share investors. |
| In 2014, dividend changes varied considerably from region to region: | In 2014, dividend changes varied considerably from region to region: |
| The firm's research shows that global dividend income has risen by 60% in the five years since since 2009. | The firm's research shows that global dividend income has risen by 60% in the five years since since 2009. |
| 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 an identical fashion to compound interest. | 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 an identical fashion to compound interest. |
| The research looked at the dividends paid by the 1,200 biggest quoted firms whose shares are traded on stock exchanges around the world. | The research looked at the dividends paid by the 1,200 biggest quoted firms whose shares are traded on stock exchanges around the world. |