A Dividend of Confidence
Offered by Rob Taylor
The most recent stats on corporate dividends suggest that global companies are bullish on the world’s economic recovery.
Dividends paid to investors are on track to hit $1.4 trillion this year and are expected to stretch even higher in the next 12 months. New research found that 84% of companies in the second quarter either increased or maintained their dividend compared to last year.1
Although the current environment looks positive, dividends can be stopped or decreased at any time. If a company has financial difficulties, its board of directors may elect to reduce or eliminate its dividend for a period of time.2
If you have your eye on a dividend-paying stock, you may want to take a look at the company’s cash position. Companies with a strong cash position might be able to pay their scheduled dividend without interruption. Some mature, profitable companies have a track record of paying regular dividends to shareholders. But past performance can’t guarantee future payouts.
Evaluating a company’s cash position can be difficult, so we often turn to professionals who have experience reviewing a company’s financial statements. If a dividend idea has crossed your mind, give us a quick call. We may have some research that you might find helpful.
1. CNBC.com, August 23, 2021
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