Although dividend payments have fallen during coronavirus, that does not mean that the outlook for stock markets is poor. On the contrary, a decline in dividends has often been followed by a surge in equity prices as economies have recovered. This is what we saw after the Global Financial Crisis (GFC) and have also seen since 23rd March this year. In any case, investors are no longer bracing for such a big plunge in dividends as they were five months ago. Expectations for future dividend payments have recovered significantly since then, even if they remain well below their trailing level on 19th February.
Become a client to read more
This is premium content that requires an active Capital Economics subscription to view.
Already have an account?
You may already have access to this premium content as part of a paid subscription.
Sign in to read the content in full or get details of how you can access it
Register for free
Sign up for a free account to:
- Unlock additional content
- Register for Capital Economics events
- Receive email updates and economist-curated newsletters
- Request a free trial of our services