COVID-19 Crisis Dramatically Alters 2020 Dividend Outlook

Now in its sixth year, the Janus Henderson Global Dividend Index is a quarterly long-term study that analyzes dividends paid by the 1,200 largest firms by market capitalization. In this video, Investment Director Jane Shoemake provides an update on dividend trends over the last quarter, along with a new “best and worst” forecast range for 2020.

Key Takeaways

  • Given the unprecedented halt in economic activity we have experienced as a result of COVID-19, dividend cuts and suspensions were inevitable. However, it is worth remembering that most large global companies are still operating. We expect many of these companies will resume payments once the crisis subsides.
  • In addition, two-fifths of global dividends are paid by companies that are more defensively positioned, and here we expect dividends to be resilient.
  • An active approach to stock selection will be critical in 2020, as it is more important than ever to ensure portfolios are well diversified, both geographically and by sector.