Published on 19 Mar 2024 on Insider Monkey via Yahoo Finance
11 Best Dividend ETFs To Buy
In this article, we discuss 11 best dividend ETFs to buy. If you want to skip our discussion on dividend-paying companies, head over to 5 Best Dividend ETFs To Buy.
Reuters reported that global corporate dividends reached a record high of $1.66 trillion in 2023, largely due to substantial contributions from banks. According to the Janus Henderson Global Dividend Index, nearly 86% of listed companies worldwide either increased or maintained their dividends. Projections from the same index indicate that dividend payouts are set to hit a new peak of $1.72 trillion this year. Microsoft Corporation (NASDAQ:MSFT) emerged as the leading dividend payer in 2023, followed closely by Apple Inc. (NASDAQ:AAPL) and Exxon Mobil Corporation (NYSE:XOM). The overall value of corporate dividends saw a 5% increase from 2022 to 2023, totaling $1.57 trillion. Ben Lofthouse, head of global equity income at Janus Henderson, attributed this growth to robust corporate cash flow, driving dividends and share buybacks.
Moreover, high interest rates boosted bank margins, resulting in a record $220 billion payout to shareholders in 2023. However, this positive trend was counteracted by significant dividend cuts in the mining sector, primarily due to lower commodity prices. Although the rapid ascent of bank dividends may decelerate, declines in the mining sector are expected to have a reduced impact. Despite challenges in specific sectors, diverse industries such as vehicles, utilities, software, food, and engineering demonstrated promising growth. Geographically, Europe (excluding the UK) and Japan played pivotal roles in global dividend growth, with Europe witnessing a 10.4% increase in payouts. The United States, while making a substantial contribution to global dividend growth owing to its size, reported a growth rate in line with the global average at 5.1%. Conversely, emerging markets observed stagnant dividends, with Brazil facing substantial cuts and China experiencing lackluster growth.