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 contacting a professional who has experience reviewing a company’s financial statements may be helpful.
Contact me with questions or comments.
Todd Jakubik, CFP®
Certified Financial Planner Professional™
Total Financial Concepts, Inc
106 Apple Street
Suite 204
Tinton Falls, NJ 07724
Phone: 732-225-7404
Citations:
- CNBC.com, August 23, 2021
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This material was prepared by MarketingPro, Inc., and does not necessarily represent the views of the presenting party, nor their affiliates. This information has been derived from sources believed to be accurate. Please note - investing involves risk, and past performance is no guarantee of future results. The publisher is not engaged in rendering legal, accounting or other professional services. If assistance is needed, the reader is advised to engage the services of a competent professional. This information should not be construed as investment, tax or legal advice and may not be relied on for the purpose of avoiding any Federal tax penalty. This is neither a solicitation nor recommendation to purchase or sell any investment or insurance product or service, and should not be relied upon as such. All indices are unmanaged and are not illustrative of any particular investment.
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