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International Dividend Performance Analysis: Germany vs Other Countries on the Global Stage

Worldwide dividends reach historic peaks, with Germany being an exception as Bayer and BMW enforce cutbacks.

Germany outperforms in international dividend rankings, setting a new benchmark
Germany outperforms in international dividend rankings, setting a new benchmark

International Dividend Performance Analysis: Germany vs Other Countries on the Global Stage

In a surprising turn of events, Germany saw a decline in dividend payments, contrasting the global trend of increased dividends. According to an analysis conducted by investment firm Janus Henderson, global dividends reached a new record of $606 billion in the second quarter, with a growth of 5.8% compared to the previous year.

Despite this, Germany did not follow suit. Factoring in currency effects, global dividends growth was 8.2%, but Germany observed a decline. Nine out of ten German companies either increased their dividend or kept it constant, yet the total payout dropped to 47.2 billion euros, a decrease from the previous year's 47.3 billion euros.

Some notable exceptions include Porsche, which doubled its dividend payment, and Allianz, the largest dividend payer in the DAX, which increased its payout by a fifth. However, other prominent German companies such as BMW and Fresenius reduced their payouts. BMW significantly cut its dividend after a record payout in the previous year, while Fresenius eliminated its dividend entirely to maintain government support.

Bayer, in a more drastic move, reduced its payouts by 95%, saving $2.5 billion for debt reduction from the Monsanto acquisition. This decision, along with the cuts from other companies, contributed to the overall decline in German dividend payments.

For those interested in the financial market, €uro am Sonntag offers a comprehensive overview of the most traded derivatives as a digital subscriber, and provides a weekly digital update. The current issue of €uro am Sonntag contains Henderson experts' predictions for global dividend payments, including their estimate of total dividend payments in the third quarter to be around USD 150 billion.

€uro am Sonntag, Germany's leading financial weekly, also offers a special action subscription with 3 digital issues for 9.90 euros. This provides an opportunity for readers to stay informed about the latest developments in the financial market.

In conclusion, while the global dividend market is thriving, Germany appears to be experiencing a dip. However, with the insights provided by financial experts like those at Janus Henderson, readers can stay informed and make informed decisions about their investments.

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