Due to the pandemic, many companies were forced to minimize their dividend payments. In the near future, analysts expect the situation to improve, so shareholders will be able to make good profits. Against the background of economic rehabilitation, market players began to actively invest in dividend stocks. Funds focused on such securities received an inflow of investments in the amount of $ 675 million in the last week alone.
A similar picture indicates a change in the global situation. Thus, in 2020 and in the first months of 2021, equity-oriented investment funds in most cases experienced a net outflow of funds. In May last year, more than 140 organizations in the United States reported a reduction in dividend per share. This even affected the so-called dividend aristocrats, who have been paying shareholders a portion of their profits for over 25 years.
“This is a turning point,” said New York Life Investments, an American investment management firm. “As the economy improves, shares in dividend companies rise in value, as do payments to investors.”
The positive dynamics of the recovery of payments to shareholders gives hope for stability. Analysts suggest that the danger of a dividend cut is over, so now is the time to invest in profitable stocks.