Dividends Defy Expectations

Despite worries about a global economic slowdown during the first half of 2019, many companies still paid – and even raised – dividends. Can it continue? Ben Lofthouse, Head of Global Equity Income, says one indicator he is watching is unemployment.

Key Takeaways

  • Markets dealt with a series of worries during the first half of 2019, including central bank policy, Brexit and trade disputes. The potential for a slowdown in global economic growth was also a concern.
  • Some issues were resolved or turned out better than expected. Others were not. Even so, dividend payments have been remarkably consistent, and dividend growth has exceeded expectations.
  • Whether the trend continues may depend on the health of the global economy. One indicator we are watching: unemployment.