Dividends in Asia Pacific ex-Japan fell by 4.2% in 2024 while global dividends reached record highs, according to the latest Janus Henderson Global Dividend index.
Apac region dividends saw a 2% fall on an underlying basis last year, but reduced special dividends and weaker exchange rates drove the headline figure to a 4.2% decline.
However, global dividends grew 6.6% on an underlying basis, driven by strong growth from the financial sector and maiden dividends from tech giants Meta and Alphabet.
Japanese dividend growth stands out, with the strongest of any major stock market in 2024 for the second year running with a 15.5% increase in dividend payouts on an underlying basis.
94% of Japanese companies raised or held dividends during the year, well ahead of the global average, pushing the total figure to $86bn.
Although growth came from a wide range of companies and sectors, Toyota Motor and Honda made the biggest contribution, accounting for one quarter of the $12bn constant currency increase.
China also experienced a dividend surge, although it was not enough to offset the decline in the overall Apac region.
Dividends in China jumped 17.8% on an underlying basis in 2024 to a record $62.7bn, driven largely from payouts from Alibaba which distributed $5.1bn during the year – instantly becoming China’s third largest payer.
Meanwhile Australia weighed on dividend payouts from the Apac region, as it saw payouts drop 6.4%, impacted by substantial cuts from Woodside, BHP and ANZ.
“Asian corporates tend to be more conservative amid concerns of global growth, but we would expect that following clarification on tariffs and recent evidence of stabilisation in China, the trend in dividends will continue on its long-term, positive trend,” said Sat Duhra, portfolio manager for Asia dividend income at Janus Henderson.
“The good news is that there are compelling corporate reform initiatives underway in China and South Korea, where regulators are encouraging higher dividends.”
“This is a trend can continue for years to come and support the longer-term thesis of dividend growth in Asia.”
