During the world’s worst crisis since the second world war, profits and dividends in Asia were remarkably resilient compared to the rest of the world. Building on the last three editions of research tracking the trends in dividends paid by companies listed across Asia Pacific, the latest edition of the Henderson Far East Income Dividend Index has enhanced its analysis with the inclusion of research on profits and dividends globally – highlighting how Asia is increasingly becoming a powerhouse. Whether we look at profit, cash balances, net debts, or cash flow, the region’s companies are showing that the fast-growing dividends they are paying are extremely well supported by fundamentals.
Dividends in Asia were much more resilient than expected - falling by 5.6% in 2020, compared to a 9.3% decline for the rest of the world.
Asia Pacific ex Japan has beaten the rest of the world in the profit race, over the last one, three, five, and ten years. In 2020, profits from Asia made up 36% of the global total, up from just 23% a decade earlier.
Whether we look at profit, cash balances, net debts, or cash flow, the region’s companies are showing that the fast-growing dividends they are paying are extremely well supported by fundamentals.
These are the views of the author at the time of publication and may differ from the views of other individuals/teams at Janus Henderson Investors. Any securities, funds, sectors and indices mentioned within this article do not constitute or form part of any offer or solicitation to buy or sell them.
Past performance is not a guide to future performance. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.
The information in this article does not qualify as an investment recommendation.
Before investing in an investment trust referred to in this document, you should satisfy yourself as to its suitability and the risks involved, you may wish to consult a financial adviser.
Henderson Far East Income Limited is a Jersey fund, registered at Liberté, 19-23 La Motte Street, St Helier, Jersey JE2 4SY and is regulated by the Jersey Financial Services Commission] Ref: 34V
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