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Finding dividends in a low growth environment
Ben Lofthouse, Portfolio Manager of Henderson International Income Trust, discusses the dividend trends playing out in 2023, the benefits of diversification in an uncertain environment, and dividend sustainability during a period of low growth.
5 Apr 2023
25 minute listen
25 minute listen
Key takeaways:
• Despite a challenging backdrop, HINT has performed well with the net asset value currently at all-time highs. We have been increasing our exposure to European cyclical stocks and domestic Chinese companies which we believe will benefit from the economic reopening and recovery.
• While the last few years have been challenging for investors, if you were not broadly diversified, the losses were much worse. The recent correction in tech stocks underscores how important diversification is for building long-term wealth.
• The global economy is slowing as interest rates and corporate profits come under pressure. Though dividend cover remains strong, the pressure on corporate earnings means dividend growth will moderate to 5-7% in 2023.
Catch up on previous episodes
Related insights
5 Apr 2023
25 minute listen
25 minute listen
Key takeaways:
• Despite a challenging backdrop, HINT has performed well with the net asset value currently at all-time highs. We have been increasing our exposure to European cyclical stocks and domestic Chinese companies which we believe will benefit from the economic reopening and recovery.
• While the last few years have been challenging for investors, if you were not broadly diversified, the losses were much worse. The recent correction in tech stocks underscores how important diversification is for building long-term wealth.
• The global economy is slowing as interest rates and corporate profits come under pressure. Though dividend cover remains strong, the pressure on corporate earnings means dividend growth will moderate to 5-7% in 2023.