A shared global dividend culture

Dividends have always provided investors with a steady stream of income. But in recent years, with interest rates at rock bottom in developed economies, investors have appreciated the benefits of higher dividend yields. This is not only because of the equity income they offer, but because being able to pay a steady dividend has been an important signal of corporate health and confidence in difficult markets. But as UK companies cut dividends to conserve cash, or became insolvent – as RBS or Lloyds did during the credit crunch – investors left with increasingly concentrated portfolios ...