Companies in Asia have enjoyed the highest dividend growth in recent years with pay-outs soaring 162% since 2010 according to analysis by Henderson International Income Trust (HINT).
Investors have enjoyed the strongest income growth from North America as dividends jumped 148%, followed by Japan at 144% and emerging markets at 90.7%.
In Europe, companies hiked pay-outs by a noticeably slower 47%.
In the UK, the value of dividends grew 74.5% since 2009, reflecting a £94bn pay-out to shareholders of listed firms in 2017.
Data was compiled from the 1,200 largest companies globally, revealing international dividend growth was driven by maturing tech companies that now generate higher sales and cash.
Many UK-focused investors rely on a few companies to deliver most of their income as the top 10 firms paid over £1 for every £2 in dividends last year.
Outside of the UK, the top 10 companies contributed only £1 out of every £9.
The lack of diversity in UK income stocks is also evident at a sector level as nearly 30% comes from oil and mining stocks, more than double the proportion from the same sectors internationally.
‘As well as being able to enjoy faster growth that we have seen coming from overseas dividends, investors who add an international element can spread the risk of their investments not just across a wider range of different economic, but also sectors and companies,’ says fund manager Ben Lofthouse.
