In the years that followed the 2008 financial crisis, ultra-low interest rates led many investors to seek income from sources outside the bond market, such as dividend-paying stocks. As interest rates have plummeted this year, we believe demand for dividend payers may swell once again. However, the COVID-19 crisis has led several companies to cut dividends. In our view, stocks that can maintain strong dividend policies may grow more attractive, as income-oriented investors chase fewer dividend payers. We believe dividend durability may be a key driver of performance for dividend ETFs in the months ahead.
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Posted on Wednesday, May 13, 2020 @ 8:59 AM
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