Monday, August 17, 2015

Dividends fall dragged by strong dollar – The Economist

“The drop in total dividends recorded may seem disappointing but hides the strong improvement in ordinary dividends.” Alex Crooke, Henderson Global Investors.

In the US financial sector begin to improve, analysts say . File Photo: Reuters

The dividends paid by companies to their shareholders fell on average 6.7% in the second quarter of 2015, dragged down by the strength dollar, although exceptional factors are excluded, rose 8.9% according to a study by Henderson Global Investors.

In total, were distributed 404.900 million in the second quarter of 2015 to the shareholders, which a decrease of 29,100 million over the same period last year.

This is the third consecutive quarterly decline indicates the British management company in a statement Monday.

This withdrawal was “primarily” due to “the strength of the US dollar against major world currencies,” says, explaining that the dividends are converted into US currency by necessity of the study.

However, “after adjustment for the effects of change and other factors,” he observes, ordinary dividends advance of “encouraging way” 8.9%, Henderson notes in his study.

“The Fall of the total dividends be registered seem disappointing, but hides the strong improvement in ordinary dividends, “confirms Alex Crooke, dividends specialist Henderson Global Investors.

In Europe, excluding the UK, the decline amounted to 14.3% ( 133,700 million) due to the weak euro. But ordinary improved 8.6 percent.

In contrast, the United States, total dividends grew 10%, representing the sixth consecutive quarter of improvement.

After being revised downward forecasts for 2015 have been reassessed to 1.16 billion dollars (compared to the previous 1.13 billion), the effect of the strengthening of ordinary dividends.

Henderson Global Investors forecast to rise 7.8 % of ordinary dividends and a fall of 1.2% of total dividends due to the strong dollar, the statement said.

At the sectoral level, finances are still recovering from the crisis and improves its dividend.

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