HSBC Leads Global Dividend Payouts While Asia-Pacific Faces Challenges

Thursday, 12 September 2024, 01:46

Janus Henderson highlights HSBC as the top global dividend payer, with $11.7 billion. However, Asia-Pacific, including South Korea and China, struggles despite policy incentives. The outlook remains hopeful, supported by reforms in the region.
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HSBC Leads Global Dividend Payouts While Asia-Pacific Faces Challenges

HSBC Leads Global Dividend Payout Rankings

HSBC Holdings has emerged as the top global dividend issuer in the second quarter, disbursing US$11.7 billion. This remarkable figure was bolstered by a special dividend of US$4 billion following the sale of its Canadian operations. HSBC's payout was a response to calls from its top shareholder, Ping An Asset Management, for improved dividends.

Challenges in Asia-Pacific Region

Despite HSBC's success, the Asia-Pacific region, particularly South Korea and China, trails behind. The total dividend payouts for Hong Kong companies reflected a modest growth of 1.1 percent, influenced by significant reductions from shipping giant Cosco. Overall, Asia-Pacific's payouts increased to US$39.5 billion, amidst global dividend growth of 8.2 percent to reach a record US$606.1 billion.

Policy Incentives and Future Reforms

The outlook for dividends in Asia-Pacific appears more optimistic as governments push for reforms aimed at enhancing corporate confidence. In South Korea, a recent initiative has increased dividend payouts by 12.6 percent, with companies distributing US$9.3 billion. Similarly, China has announced plans for reforms in state-owned enterprises aimed at improving investor returns.

Conclusion: A Brighter Future?

As Janus Henderson foresees global dividend payments rising by 6.4 percent in 2024, it suggests that initiatives like the 'Value-Up' programme in South Korea and various reforms in China will play a pivotal role in enhancing dividends across the region.


This article was prepared using information from open sources in accordance with the principles of Ethical Policy. The editorial team is not responsible for absolute accuracy, as it relies on data from the sources referenced.


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