10.06.2020

Polar Capital

European Income: The Future of Dividends

Executive summary

  • The great dividend reset – dividends are expected to recover quickly from the low 2020 and 2021 base
  • Scarcity of yield has been a key factor in UK equity income problems; regional and global propositions offer much more diversified opportunity sets
  • Lower but growing and sustainable dividend yields are more compelling than highest yielders
  • ESG not going away – more stakeholders getting more of a say in payouts
  • Attractive dividend yields in disrupted sectors should continue to be avoided

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