Hong Kong dividend stocks no longer in favour as payouts slashed

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DIVIDEND investors are having to rethink their strategies in Hong Kong's stock market, as companies mired in a pandemic-driven recession are slashing payouts more than before. Read more at The Business Times.

A dividend freeze has occurred globally. As firms opt to preserve cash given prolonged uncertainties of the pandemic, global payouts could shrink as much as 23 per cent this year - which would make 2020 the worst year for dividends since the financial crisis, showed a Janus Henderson Investors study published this month.

19 per cent in 2020, compared to a 2 per cent drop for the S&P 500, calculations using futures maturing in December showed. Sherwood Zhang, a portfolio manager at Matthews Asia, said he has recently further reduced exposure to traditional dividend payers, particularly financials, and lifted the portion of growth stocks in his portfolio to as much as 70 per cent.

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