Sometimes when people think about dividend companies, they think about old, mature companies making profits paying dividends but little growth. People think it is sexy or the expression “keeping up with the Jones” to invest in growth companies. If you understand growth companies go up and down and for every successful growth company there are tens or hundreds of companies that did not grow for very long.
In an article from Reuters, global corporate dividends are set to reach a record high this year as a rebound in business activity and a rise in consumer demand boosted profits for most sectors than were hit by the pandemic last year.
According to a Reuters analysis of Refinitiv data for 3,394 global companies with a market capitalization of at least $1 billion (stock market price times shares outstanding) , their total payouts to shareholders are estimated to be $1.37 trillion in 2021.
The data shows European companies payouts in 2021 ae estimated at $252.4 billion, a 25% rise from last year. US dividends are expected to grow to $562.3 billion a 8.6% increase.
Globally 90% of companies either raised their dividends or held them firm – a very strong reading according to a Janus Henderson report.
Linking to dividend paying stocks, one of the goals of investing is try not to lose money and receiving dividends helps that process. With in the range of 3.394 global companies with a market capitalization of over $1 billion is companies which trade similar to growth stocks because of their field – whether they are linked to commodity prices or opening up the economy. You have many possibilities of investing. With the dividends you have more options to buy, do nothing or use the money for other purposes.
There are more questions than answers, till the next time – to raising questions.