Asian companies pose lower dividend risk due to stronger finances

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Asian firms appear better equipped to pay stable dividends compared with their western counterparts that are constrained by highly levered balance-sheets and a need to preserve cash during the coronavirus outbreak.

FILE PHOTO: A man wearing protective face mask, following an outbreak of the coronavirus disease , walks in front of a stock quotation board outside a brokerage in Tokyo, Japan, March 10, 2020. REUTERS/Stoyan Nenov/File Photo

“We note that companies in Asia appear to have much more insulation in terms of sustainability of cash outflow items such as capital expenditure and dividends relative to their Western counterparts,” Jim McCafferty, head of Asia-ex-Japan equity research at Nomura in Hong Kong, said in a note. Last week, Goldman Sachs said it expects S&P 500 dividends to fall by 25% in 2020 as certain large dividend-paying industries are particularly vulnerable to the economic shock of the coronavirus outbreak.

Companies such as China Mobile , China’s toll road firms and insurance companies offer secured dividends on decent valuations, he said.

 

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Strange. Reuters just had a story about ten minutes ago that asian markets were rebounding.. which is it 🤔 the later I suppose

Big heat for the stock tip I have negative ten grand in my account I’m about to blow on Mitsubishi

China will have to pay for this pandemic.

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