The stock market is expected to gain 2% by year-end, as earnings reports show strong revenue and earnings beats. Companies are managing inflation by passing on limited price increases and maintaining margins. Interest rate concerns have subsided, and earnings growth is now the focus. While earnings growth projections are low, they could be exceeded, potentially boosting the market further. Companies are also considering altering service terms instead of raising prices to maintain market share.
Global dividend payouts reached a record $1.66 trillion in 2023, driven by high interest rates boosting bank margins. Despite this, large dividend cuts from companies like BHP and Intel slightly dampened overall growth. Nevertheless, around 86% of companies either increased or maintained their dividends, with Europe contributing greatly to the overall rise. In 2024, dividend payouts are expected to continue growing, reaching an estimated $1.72 trillion.
