Report: Hong Kong's dividend payout is expected to reach $25.5 billion by 2025 with core dividends increasing by 8.5%.

Capital Group recently released its "Dividend Watch" report, forecasting that the global dividend total will reach $2.09 trillion by 2025, a 7.0% year-on-year increase and a new annual high. Adjusted for exchange rates, one-off payments, and calendar factors, core dividend growth is at 6.0%. At the company level, the median dividend growth is 5.8%. Dividends in Hong Kong reached a high of $25.5 billion, with core dividend growth at 8.5%. The fourth quarter core growth rate is 4.3%, with the financial sector contributing about one-third of the growth. The report states that dividend payments in China have been significantly affected by major calendar adjustments, with more Chinese companies splitting traditional annual one-time dividends into two smaller payments. This factor alone has increased the total annual dividend amount by nearly $4 billion, offsetting the lower special dividend in the total growth rate. The report shows that the global dividend total is expected to rise to $2.2 trillion by 2026. For investors in Hong Kong and mainland China, dividends can continue to provide a reliable source of income and resilience in different market conditions. Vivian Chan, Head of Client Business for Capital Group in Hong Kong and Greater China, stated that dividends are one of the most tangible ways for companies to share their success with investors. In the current environment of geopolitical uncertainty, trade tensions, and market volatility, companies that consistently pay dividends and demonstrate sustainable growth can provide stability to investment portfolios.