Dividends come crashing down as Asian companies preserve cash

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SINGAPORE (BLOOMBERG) - Companies in Asia Pacific are slashing dividends at the fastest pace in more than a decade as the coronavirus pandemic upends business plans and clouds the outlook for earnings.. Read more at straitstimes.com.

SINGAPORE - Companies in Asia Pacific are slashing dividends at the fastest pace in more than a decade as the coronavirus pandemic upends business plans and clouds the outlook for earnings.

Having slammed company profits around the world, the uncertain duration and nature of the pandemic is now increasing pressure on firms globally to preserve cash. Global payouts could contract by 15-35 per cent this year - dropping to US$933 billion in the worst-case scenario, according to a Janus Henderson Investors study published in May.

Earnings for companies on the MSCI Asia gauge tumbled by more than 60 per cent in the quarter ending March. A resurgence of the virus in places such as Australia and Hong Kong is threatening to delay the region's economic recovery.

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