UK income investors are on alert after research revealed that dividend cover for companies listed in the FTSE 350 has fallen 18% in the past year, hitting its lowest level for seven years.
The weakest US dividend growth since the financial crisis pulled global dividends down 4% year on year in the third quarter, Henderson Global Investors said on Monday.
South Korea is one of the most attractive regions in Asia in terms of dividend growth potential, said Henderson Asian Dividend Income Fund co-manager Sat Duhra.
UK dividends grew 7.6% in Q2, to a record £28.8bn, according to the latest Capita UK Dividend Monitor.
The dividend cover ratio across British companies has fallen to just below 1x, the lowest since the end of the last recession in 2009, according to The Share Centre.
While markets are calm it’s better to collect dividends from US equities than put money in cash or fixed income, said David Kelly, JP Morgan Asset Management’s chief global strategist.
Total dividends paid out by the United Kingdom’s companies fell 5% year on year in the first quarter of 2016, according to the latest Henderson Global Dividend Index.
Like ‘Dirty’ Harry Callahan and Starsky & Hutch, UK Equity Income has hosted its fair share of rule-breaking mavericks, the question is should we accommodate or banish them?
Volatility will continue in China and wider Asia but certain aspects of structural growth are still creating good investment opportunities, argued Yu Zhang, lead manager of the Matthews China Dividend Fund.
The majority (69%) of UK-based IFAs expect dividends to fall to 5% or less this year having averaged 9.3% over the past four years, according to research from Exchange Traded Products (ETP) provider Source.
The pace of global dividend growth is set to almost halve in 2016, the latest Markit global dividend forecast reveals.
The global economy is expected to continue to grow at a steady pace in 2016, Societe Generale Private Bank’s Alan Mudie said on Monday, but potential upside in equity markets will likely be constrained by the current high valuations and a cloudy outlook for earnings.
