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
2. Investing involves risks, and investment decisions should be based on your own goals, time horizon, and risk tolerance. The return and principal value of investments will fluctuate as market conditions change. When sold, investments may be worth more or less than their original cost. The S&P 500 Composite Index is an unmanaged group of securities considered to be representative of the stock market in general. Index performance is not indicative of the past performance of a particular investment. Past performance does not guarantee future results. Individuals cannot invest directly in an index.
The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation. This material was developed and produced by FMG Suite to provide information on a topic that may be of interest. FMG Suite, LLC, is not affiliated with the named representative, broker-dealer, state- or SEC-registered investment advisory firm. The opinions expressed and material provided are for general information and should not be considered a solicitation for the purchase or sale of any security.