2.<\/strong> Companies that return more excess capital to shareholders as dividends have proved to be effective and keep performing perfectly. This is in contrast to share buybacks that market players often view as a driver of share prices.<\/p>\n 3.<\/strong> The note analyzed net share repurchases and dividend payout ratios for companies from the S&P 500. The index factored in the percentage of earnings per share paid out as dividends over the past four quarters.<\/p>\n 4.<\/strong> After that, these companies were divided into thirds according to the rating of their dividend payout ratios: the higher the payout, the better the rating. The top third was compared with the bottom third, with a similar approach being applied to buybacks. The sectors were factored in.<\/p>\n 5.<\/strong> Companies from the S&P 500 with high dividend payout ratings (four-quarter earnings bases and other data as of May 24) were selected.<\/p>\n Sector \u25ba Company and ticker \u25ba Dividend yield \u25ba Dividend payout ratio<\/strong><\/p>\n \u2714Energy \u25ba Baker Hughes #BKR \u25ba 2% \u25ba 99.1%; 1.<\/strong>For over 20 years, from December 31, 1999 to December 31, 2019, companies in the top third showed an annual return of 10.9%, compared to 6.6% for companies in the bottom third. These figures have been consistent since the onset of the pandemic \u25ba Superior for the period from December 31, 2019 to May 20, 2022: 11.3% vs. 7.3% year-on-year.<\/p>\n 2.<\/strong> Also, top-ranking companies in terms of dividend payout ratios outperformed shares with more active repurchases: up 10.9% vs. 9.3% year-on-year over 20 years ending 2019.<\/p>\n 3.<\/strong> Since the beginning of 2020, companies from the top third have been growing, depending on their sector. Financial companies: +7.2 p.p., technology companies: +3.6 p.p. (for sure, the broad decline in the share market in recent weeks has resulted in widespread losses, apart from dividends and share repurchases).<\/p>\n Global dividends in Q1 continued to grow \u25ba +11.1% YoY to hit a record $302.5 billion<\/p>\n \u2714Payouts in the US and Canada \u25bagrowing to reach quarterly highs, sector-wide. \u2714mining payouts: +29.7% \u25ba but there\u2019s a growing divergence between companies; In general, it\u2019s all about \u201cputting your money on the table.\u201d I choose dividends over share buybacks. Cash dividends, especially when they go up, are a much better metric of the prospects and the company\u2019s real state.<\/p>\n Buybacks are subjective and usually come at the \u201cright time,\u201d making companies spend money that could have been paid back to shareholders and supporting shareholder returns. But the choice still depends on whether you want a more tax-efficient portfolio because buybacks are more tax-efficient.<\/p>\n See below for the current list of the world\u2019s largest dividend companies.<\/p>\n For over 20 years, dividend shares with the biggest payout ratios have held up well against two groups: companies that pay out a smaller portion of their earnings as dividends and companies that buy back lots of their shares.<\/p>\n","protected":false},"author":1,"featured_media":13525,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[202],"tags":[204],"class_list":["post-13407","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economics-en","tag-economics"],"yoast_head":"\n
\n\u2714Manufacturing \u25ba 3M #MMM \u25ba 4.1% \u25ba 58.8%;
\n\u2714Consumer \u25ba McDonald\u2019s #MCD \u25ba2.3% \u25ba 56.5%;
\n\u2714Healthcare \u25baMedtronic #MDT \u25ba 2.4% \u25ba43.9%;
\n\u2714Finance \u25baHuntington Bancshares #HBAN \u25ba4.6% \u25ba66.6%;
\n\u2714Technology \u25baIBM #IBM \u25ba 4.9% \u25ba 64.7%;
\n\u2714Utilities \u25ba Duke Energy #DUK \u25ba3.5% \u25ba77.4%;
\n\u2714S&P 500 \u25ba 1.6% \u25ba 28.8%.<\/p>\nResults in a nutshell<\/h2>\n
Here\u2019s an overall idea of dividends. Janus Henderson Global Dividend Index for May:<\/h2>\n
Regions<\/h3>\n
\n\u271499% of US companies increased payouts or kept them at the same level.
\n\u2714In $$$ terms \u25ba emerging markets: + 41%; Europe, excluding UK: +14.9%; North America: +11.8%; Asia-Pacific, excluding Japan: +9.2%.
\n\u2714In Europe, Q1 is seasonally calm \u25ba slow-growing Swiss pharmaceuticals dominated, but post-COVID recovery was seen in most countries.
\n\u2714Australia outperformed its Asian neighbors thanks to the powerful BHP\u2019s #BHP dividends \u25ba just imagine that almost three-fifths of Australia\u2019s Q1 was paid by #BHP ($10.8 billion).<\/p>\nIndustries<\/h3>\n
\n\u2714oil dividends showed +31.8% in base terms \u25ba those groups that cut them during 2020 are recovering;
\n\u2714dividends YoY are growing in all sectors.<\/p>\nLet\u2019s sum it up<\/h2>\n
![\"photo_2022-06-03_08-42-16\"](\"https:\/\/ivankroshnyi.com\/wp-content\/uploads\/2022\/06\/photo_2022-06-03_08-42-16-1.jpg\" "\\"photo_2022-06-03_08-42-16\\"")
<\/p>\n","protected":false},"excerpt":{"rendered":"