In this video Ben Lofthouse, Head of Global Equity Income, provides an update on some of the dividend trends that his team are seeing within the world of equity income and what they are doing to react to the COVID-19 pandemic.

    Key takeaways

  • The changes to social and working practices because of COVID-19 have benefited many companies, notably the technology, pharmaceutical, utilities and telecommunication sectors and the dividends they pay.
  • Economically-sensitive areas of the market, such as leisure and airlines, have been most impacted, along with oil and gas companies because of the slowdown, while regulators and central banks in some parts of the world have asked the banking sector to put a hold on paying dividends.
  • The uncertainty has left large parts of the market looking attractively valued from a historical perspective and a selective approach should allow for investment in leading companies that are able to fund their dividends while investing for the future.