Economic recovery and higher cash levels will boost dividend pay-outs this year, believes the asset manager.
Recent headlines may highlight cutbacks in payouts, but the global universe of dividend-paying stocks is vast and diversified with a long track record of growth.
Asia led globally with the highest dividend payouts year-on-year in Q2, with Singapore and Hong Kong dividends soaring.
Rising interest rates and inflation have shifted the dividend opportunity to the financial and energy sector rather than traditional defensive stocks, said Thomas Buckingham, London-based portfolio manager at JP Morgan Asset Management.
The firm’s head of Asian equities answers three questions about investing for dividends.
The changes in Japan may also fuel the interest of foreign investors seeking income, Simon Webber, lead portfolio manager for global and international equities, wrote in a research note.
Roughly 90% of companies represented in the MSCI Emerging Markets Index pay dividends, according to a research note by Capital Group.