Ben Lofthouse, Head of Global Equity Income at Janus Henderson: Dividend Growth and Valuation Discounts in International Markets Support Diversified Allocation
In an interview from November 2026, Ben Lofthouse, Head of Global Equity Income at Janus Henderson, argues that international equity markets currently offer three distinct advantages: higher dividend growth (with the technology sector growing 20% annually), valuations lower than those in the United States, and a natural low exposure to AI concentration risks. He notes that the focus of AI investment is shifting from infrastructure build-out to productivity applications, opening new avenues for profit growth in sectors such as financial services, manufacturing, and healthcare.
In an interview published in November 2026, Ben Lofthouse, Head of Global Equity Income at Janus Henderson, outlined three key allocation advantages currently present in international equity markets: higher dividend income, lower valuation levels, and a natural diversification away from AI concentration risks.
Lofthouse pointed out that performance in international markets is not driven by a single theme but is instead supported by broad participation across sectors such as technology, financials, and energy. Citing data from his team’s latest dividend report, he noted that the Q2 2026 report showed global dividends grew 7% year-over-year in US dollar terms. The financial sector saw growth of approximately 11%, while the technology sector surged by 20%. Given the large size of these two sectors, their dividend growth makes a significant contribution to investors' actual income, helping to offset the erosion caused by inflation.
Regarding valuations, Lofthouse observed that price-to-earnings ratios in international markets are generally lower than in the United States. He emphasized that international indices have low exposure to areas potentially disrupted by AI, such as software and online services; this means that if AI spending slows, these markets would face relatively limited headwinds. Conversely, sectors like commodities and energy in international markets have suffered from underinvestment in recent years, providing an additional source of diversification.