Due to the pandemic, many companies were forced to minimize dividend payments. In the near future, analysts expect the situation to improve, so shareholders will be able to get a good profit. On the background of economic rehabilitation, the market players began to actively invest in dividend shares. The funds, oriented on such securities, only for last week received an inflow of investments for $675 m.
Such a picture indicates a change in the global situation. For example, in 2020 and the early months of 2021, equity-focused investment funds mostly experienced net outflows. Last May, more than 140 organizations in the United States reported a decrease in dividends per security. Even the so-called dividend aristocrats, which have been paying shareholders a portion of profits for more than 25 years, were affected.
“This is a turnaround,” said representatives of New York Life Investments, a U.S. investment management firm. – As the economy improves, shares of dividend companies rise in value, and so do payouts to investors.”
The positive recovery in shareholder payouts offers hope for stability. Analysts suggest the danger of dividend cuts has passed, so now is a good time to invest in profitable stocks.