Dividend Investing’s Golden Era: Aegon AM’s Peden

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The disbursement of dividends is forecasted to reach an all-time high in 2023 with $1.6 trillion returning to investors. This alluding to an unprecedented shift in dividend outlooks. Thomas Peden, financial analyst, believes the change been seen is a remarkable turnaround from the gloomiest days of the pandemic.

Back in 2018, companies were slashing their dividends to the bone or stopping them completely during the Covid induced market downfall. Heads of many companies were worried that this could result in a lasting deflation of dividends, however, this is not the case. Dividend Payments in the market continue to surge, and will reach their highest-ever levels in 2023.

Peden believes that companies are looking to the long-term when it comes to disbursing dividends and have a optimistic outlook. Considering the rebound from the darker days of Covid-induced market selloffs, their positivity could very well be justified.

Moreover, this surge in dividend payments is mainly due to large companies within the S&P 500 Index. Already the returns have been impressive with positive results observed in the first two quarters of 2021.

All signs point to an uptick in dividend payments, which of course cannot be complete without adequate liquidation of share repurchases. Peden believes that appropriate liquidation and buyback of stocks is an essential part of the equation for increased dividend payments.

Completing this part of the dividend equation has resulted in even higher rates of dividend returns since 2019. Consequently, companies will be required to liquidate close to a trillion dollars worth of share repurchases alongside the forecasted $1.6 trillion.

With significant evidence suggesting a surge in dividend payments, many investors, especially those with a long-term focus, stand to reap rewards. Yet, investors are cautioned to adequately diversify their portfolios in order to safeguard their position while they wait to reap their investments.

Considering the downturn of the economy during the pandemic, combined with the forecasted $1.6 trillion of dividend returns, Peden believes this marks a remarkable turnaround, one yearned across multiple sectors. He believes it is the silver lining of the pandemic, providing investors worldwide with optimism and hope.

The company market has been through one of the toughest battles in its history in the last few years and this jump in dividend payments has been a welcome respite. From the fall of 2018, to the impressive returns for 2021, the revitalization was remarkable, as Peden believed it would be. Dividend payments are now forecasted to touch unprecedented heights, signaling a brighter future for investors across the globe.

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Dividend Investing’s Golden Era: Aegon AM’s Peden