Sat Duhra, Portfolio Manager of Henderson Far East Income, discusses the key findings from the latest edition of the Henderson Far East Income Dividend Index report - highlighting how resilient dividends and profits in Asia-Pacific ex-Japan were compared to the rest of the world.

Watch the video to hear Sat Duhra talk through the key findings from the report.

Key takeaways:

  • Outside Asia-Pacific, the first year of the pandemic had a severe impact on dividends. They fell 8.8% in sterling terms in 2020/21, with the most severe impact in the UK, Europe, and Emerging Markets. In contrast, dividends in Asia were more resilient with payouts falling by just 2.7%.
  • As household budgets come under pressure, companies we consider “upstream” sitting at the top of supply chains, are likely to do better than those ‘downstream’, which are closest to the consumer. Equally, global brands like Samsung have more protection than the commodity consumer firms with no pricing power.
  • Our analysis of consensus estimates suggests that profit growth of 5-7% this year. We also expect dividends from the region to rise between 6-8% in 2022/23, to a total of £333 billion – a new record.