FIRMS around the world paid out a record amount of dividends in the first quarter, data showed yesterday, as they shrugged off worries about slowing economic and earnings growth.

Global dividends rose 7.8 percent in the first quarter to US$263.3 billion, matching last year’s growth and pushing the Janus Henderson global dividend index to an all-time high, according to a report by the asset manager yesterday.

The data show the growing optimism of companies and helps explain equities’ continued appeal in the face of global trade tensions and worries about a global economic slowdown.

The escalating trade dispute between the United States and China has sent chills through global markets over the past few weeks, sending investors to safe-haven assets like government bonds.

“The growth rate is slightly higher than we’re expecting for the year as a whole,” said Ben Lofthouse, head of global equity income at the asset manager.

“Given the volatility at the end of last year and all the concerns multiplying around the world with Brexit and the trade war, that’s pretty positive.”

Janus Henderson expects a record US$1.43 trillion in payments this year, up 4.2 percent in headline terms, the report said.

That’s substantially lower from the 9.4 percent rise seen in 2018 and would be the slowest growth since 2016.

Still, that’s significantly higher than government bond yields. U.S. 10-year Treasury bond yields were around 2.4 percent, while Germany’s Bund yields headed back towards 2-1/2 year lows Friday.

World stocks markets have moved in step with higher dividend payouts over the past decade or so, Citi’s global strategy team said in a recent note.

The bank said global stocks rose 7 percent per year since 2010, the same pace as global dividend growth.

Part of the reason for the big first quarter jump was special dividend payouts, from BHP Group, Akzo Nobel and Novartis among others, which offset the impact of the higher U.S. dollar, the Janus Henderson report said.

By sector, pharmaceutical companies offered the biggest payouts in the quarter, contributing US$1 in every US$8 paid globally due to special dividends from Novartis and Roche.

Emerging markets was the only area where companies cut their dividend payouts, by 6.1 percent to US$16.2 billion, and Asia Pacific saw the biggest growth of 14.7 percent to US$18.1 billion, followed by the U.K. with 10.5 percent growth to US$20.7 billion. (SD-Agencies)