Investors from the U.S. showed interest in dividend stocks amid falling government bond yields

05-07-2021

U.S. investors are interested in securities of companies that pay large dividends. This interest is based on forecasts of government bond yields, which will not show significant growth in the second half of 2021. 

According to some investors, stocks of companies that increase payouts to shareholders every year will be profitable investments in the near term. Companies in the S&P 500 index plan to raise dividends by an average of 6 percent between 2021 and 2022. These companies have reduced or suspended shareholder distributions in 2020. However, already 22 of the 57 organizations have resumed accruing dividends. The federal reserve loosened restrictions on payouts to shareholders as a percentage of profits. As a result, financial institutions may raise their dividends sharply. 

Since June 28, major U.S. banks have announced dividend increases:

  • Goldman Sachs Group;
  • Morgan Stanley;
  • Bank of America and others.

Analysts assume that in addition to financial enterprises, dividend payments may be increased by beer producer Molson Coors Beverage Co, industrial group Honeywell International, microchip maker Broadcom.

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