What Next for Dividend Investors?

2020 was a dire year for dividend investors, but a bounceback in value stocks could mean equity income stocks are well positioned for the long-term 

Dan Lefkovitz 11 January, 2021 | 9:06AM
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Outlook Dividends

Dividend investors, like so many others, experienced 2020 as an annus horribilis. The pandemic-driven economic downturn prompted a raft of companies to cut or suspend planned payouts to shareholders.

While the Morningstar Global Markets Index showed equities across developed and developing markets advancing 16% in US dollar terms in 2020, the Morningstar Global Dividend Yield Focus Index declined half a percentage point for the year. Dividend payers underperformed during the first quarter’s painful bear market then lagged when stocks bounced back.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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About Author

Dan Lefkovitz

Dan Lefkovitz  is strategist for Morningstar’s Indexes group