On the eve of a crisis G7, NGOs denounce a new record of stock dividends – RT in French

As the recession threatens, stock dividends have reached a record high. Associations like Attac or Oxfam France denounce the hypocrisy of a G7 officially dedicated to the fight against inequalities

A record $ 513.8 billion (463 billion euros) was distributed as dividends to shareholders worldwide in the second quarter, according to a benchmark study published on August 19 by fund management company Janus Henderson Investors.

However, their growth (+ 1.1%) was held back by a slowing economy. By way of comparison, the amount of dividends jumped 14.3% a year earlier. The report also notes that "the growth rate has been the weakest in more than two years," and that the deceleration of the global economy has "begun to be felt on dividends."

In addition, this explosion was driven by US indices. In Europe (excluding the United Kingdom), dividends fell by 5.3% to $ 169.5 billion (152.8 billion euros). The Asia-Pacific region excluding Japan also did less well than last year (-2.9% to 43.2 billion dollars), weighted by Hong Kong where "a quarter of the companies" analyzed reduced their dividends, to because of the Chinese slowdown, according to the document.

Not enough to touch the organizations alterglobalists who participate this week in the "counter-summit" in Hendaye, near Biarritz in the Pyrénées-Atlantiques where the summit of heads of state is held.

"The world against G7 is not surprised (by) this record figure that illustrates the policies that need to be transformed today to finance the general interest rather than remunerate the shareholders," for example commented Maxime Combes, door of Attac France quoted by AFP.

He also denounces "a double discourse between a G7 that wants to be the fight against inequalities and national policies that contribute to increase them." A point of view shared by Oxfam France whose spokesman Quentin Parrinello said: "The G7 countries are putting in place policies that favor the payment of dividends, especially at the expense of wages."

According to the calculations of this NGO, in the last two years "the dividends paid in the G7 countries have increased three times faster than wages."

France stands out in Europe for its generous dividends

The French branches of Attac and Oxfam are also convinced that if France emerges from this study as "by far the largest payer of dividends in Europe" (+ 3.1% 46 billion euros), it is thanks to a tax favorable to the shareholders.

For the full year of 2019, the Janus Henderson firm expects a record $ 1,430 billion in dividends, an increase of 4.2% over the previous year. It also predicts that this year's dividend growth will be higher than that of the global economy, expected at + 2.6% by the World Bank and 3.2% by the International Monetary Fund.