S&P Global – 2024 dividend trends

After recent global challenges, the economy is stabilizing, with projected GDP growth of 3.2% in 2024 and 3.3% in 2025. However, there are significant differences in growth rates between regions. The US is expected to see steady growth, while the euro area is struggling. Amidst trade tensions and inflation risks, understanding equities in the macroeconomic context is crucial for investors in dividend assets. The 2024 global aggregate dividends are forecasted to reach US$2,333 billion, driven by the banking sector and major companies reinstating or initiating dividend payments. However, some sectors like transportation and materials are offsetting this growth. Special dividends will only marginally affect the overall growth rate of 6.9% year over year. In 2025, growth is expected to slow to 1.5%, with adjustments for special dividends maintaining a 6.0% growth rate. Notable changes include reduced special payments from Saudi Aramco, impacting growth measures. While uncertainties remain, this report aims to provide a detailed analysis of the 2024 dividend trends to help investors navigate the evolving landscape.