The global dividend opportunity

Harvest recurring income with capital growth opportunities

With bond yields compressing and USD15 trillion1 in bonds now earning negative yields, equity income is now more important than ever. Equity is one asset class where investors can still find attractive potential yields. Even in Q2 2020 during a worldwide health crisis global equities paid out an aggregate almost USD400 billion2 in dividends. The universe of dividend-paying stocks is large and diversified, with a long history of growth. Continued demand for income as ageing societies save for retirement also incentivises companies to sustain their dividend pay-outs.

Key benefits

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Income and growth potential

The outlook for economic growth amid a worldwide health pandemic appears challenged. But when conditions turn volatile, companies that pay dividends can offer investors an income as they wait for markets to recover. In addition to yield, dividend stocks also offer investors potential capital growth.

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Diversification

In today’s environment of record-low bond yields, an equity dividend strategy can act as a good diversifier for investors seeking income. It also boasts low correlation to other income-yielding asset classes such as bonds, providing investors with the opportunity to build a more balanced portfolio.

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Our global footprint

We draw on the expertise of a 140+ strong equity investment team operating in 14 markets worldwide, combining their local insights with global perspectives. They analyse thousands of companies and maintain a recommended buy-list of about 1,100 stocks that meet the standards of our rigorous due diligence.

Investor guide to dividends

What are dividends and why do companies pay them to shareholders? What do dividend payments say about a company’s quality and governance standards? Do all companies issue dividends and if not, why not? Will economic challenges due to the global coronavirus pandemic impact companies’ ability to sustain dividend payments? What is the outlook for dividend payments in future and what are the that risks investors need to be mindful of?

We aim to answer these questions in simple, jargon-free language to equip readers with a greater understanding of dividend investing and the role it can play in a balanced portfolio.

To read our educational guide to dividend investing, please click on the button below.

Funds in focus

Unmasking the opportunity in dividends

Recent headlines may highlight cutbacks in pay-outs, but the global universe of dividend-paying stocks is vast and diversified with a long track record of growth.

The harsh economic fallout of a global coronavirus pandemic may seem a perverse time to highlight the benefits that dividend income can bring to investment portfolios.

Click on the article on the right to read more.

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1Source: Bloomberg Barclays Global Aggregate Negative Yielding Debt, USD terms, 2 September 2020
2Source: Financial Times, Global dividends suffer worst quarterly fall since 2009, 24 August 2020. https://www.ft.com/content/a136da68-4cc8-489f-9265-a719b11f75e6