In this video update Ben Lofthouse, Head of Global Equity Income, assesses markets from an income perspective, identifies where the team is finding the best opportunities and examines the outlook for dividend growth.
Global dividend study – The Janus Henderson Global Dividend Index is a long-term study of global dividend trends.
Payout ratio – The percentage of a company’s earnings that are paid as dividends. This can be an indicator as to whether a company has the scope to maintain or increase dividends. The team typically avoids companies with high payout ratios because this leaves the potential for dividend cuts if the business is struggling to grow its earnings. Managers are, however, prepared to invest if they believe the high dividend yield or payout ratio is a function of a stock being temporarily unloved by the market.
Dividend yield – Divides dividend payments over a 12-month period for each share by the share price and is typically expressed as a percentage rate.
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