Dividends paid to shareholders could fall by as much as 35% in 2020, as the coronavirus pandemic cuts companies' profits, data from asset manager Janus Henderson showed on Monday.
LONDON - Dividends paid to shareholders could fall by as much as 35% in 2020, as the coronavirus pandemic cuts companies’ profits, data from asset manager Janus Henderson showed on Monday.
The level of uncertainty for the rest of the year is so high that Janus Henderson said there would be little value in giving a precise estimate on dividend payouts for 2020, and gave a range of scenarios instead. Some regions could have bigger dividend cuts overall than in the financial crisis of 2008, the report said.
Banks, discretionary consumer sectors and economically-sensitive industrial sectors are expected to be most affected while dividends from technology, healthcare, food and basic consumer sectors should be safer, Janus Henderson’s report said. Asia is expected to have less of an impact in 2020 and take a bigger hit in 2021 because in China and the rest of Asia companies have already fixed their payouts for this year based on profits from 2019.
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