By Lucy Raitano

LONDON, (Reuters) – Mining and oil companies led a 11% increase in dividend payments to a record first quarter of $302.5 billion according to a global report. However, it cautioned that businesses face increasing challenges over the coming months.

Janus Henderson in Britain says that the rising interest rate, increased inflation, geopolitical tensions and high oil and commodity prices are all likely factors to affect companies’ dividend prospects.

This uncertainty is expected to have a significant impact on corporate decision making. Although the impact on dividends will be felt beyond 2022 it is worth noting that profits are less volatile than dividends,” Jane Shoemake (janus Henderson client portfolio manager), said.

Following the pandemic that killed 400,000 people, shareholders received a resurgence in their payouts.

Janus Henderson’s index recorded higher dividends in the first quarter than the previous year. The fastest growing business sector was mining and oil, which both increased almost one-third.

BHP came first in Q3, followed by Novartis (a Swiss pharmaceuticals firm) and Swiss pharmaceuticals group Novartis.

Maersk, the Danish shipping firm, was the third-largest, with the highest single dividend rise, thanks to disruptions in supply chains.

The overall index saw 94% increase or maintain dividend levels. Every region experienced double-digit growth.

Janus Henderson predicts that the global dividends will rise to $1.54 trillion by 2022, an increase of 4.6% on the $1.47 Trillion paid in 2021. It is also over five times higher than 2020. Since 2009 when the global dividend index was created, payouts have increased more than twice.