The Dividend Turnaround: From Dilemma to Deluge

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Aegon Asset Management, in their article "The Dividend Deluge", retraces the remarkable transformation of the dividend landscape in the wake of the Covid-induced market turmoil. During the market selloff, companies were extensively cutting or suspending dividends, leading to predictions of a steep and prolonged decline in global dividends. Contrary to a 30% anticipated fall, the payouts rebounded in an astonishingly short span of just one year.

Record-Setting Dividend Payouts and Share Buybacks

Despite the earlier fears, the years 2021 and 2022 witnessed record-breaking global dividend payouts of $1.47 trillion and $1.56 trillion respectively. Aegon Asset Management forecasts that this upward trajectory is set to continue in 2023, with dividends expected to reach $1.60 trillion. In conjunction with this, 2022 also set a record for share buyback authorizations, signifying that companies are returning capital to shareholders at an unprecedented rate.

Are you intrigued by the stunning recovery of dividend payouts and the record-setting share buybacks? Click 'Report' to delve deeper into Aegon Asset Management's analysis of this unexpected turnaround in the dividend landscape.