Sector report: Will the end of QE kill dividend flow?

SECTOR REPORT

clock • 5 min read

A possible end to QE is one of several concerns surrounding dividend investing. Jeffrey Schumacher, fund analyst at Morningstar, looks at the prognosis for the sector.

Dividend investing has been a popular investment style over the past three years as the search for yield has driven investors into high-yielding stocks. This has been caused by a combination of factors, such as changing demographics, low interest rates, uncertainty and low economic growth. These factors have fuelled investors' appetite for dividend-paying stocks. Morningstar data shows that assets under management within the Global Equity Income category have risen sharply from €8.5bn in January 2010 to €46.8bn as of May 2013. Of this amount, €26.8bn is attributable to inflows, but th...

To continue reading this article...

Join Professional Adviser for free

  • Unlimited access to real-time news, industry insights and market intelligence
  • Stay ahead of the curve with spotlights on emerging trends and technologies
  • Receive breaking news stories straight to your inbox in the daily newsletters
  • Make smart business decisions with the latest developments in regulation, investing retirement and protection
  • Members-only access to the editor’s weekly Friday commentary
  • Be the first to hear about our events and awards programmes

Join

 

Already a Professional Adviser member?

Login

More on Equities

Investment, Talks Webinar: Changing global patterns can bring new opportunities

Investment, Talks Webinar: Changing global patterns can bring new opportunities

Join Investment Week and Capital Group on the 22nd May at 11am

Hardeep Tawakley
clock 08 May 2025 • 1 min read
Webinar: What's next for equities?

Webinar: What's next for equities?

How can investors navigate the impact of tariffs and a rapidly changing global economy?

Investment Week
clock 08 May 2025 • 1 min read
Will a tech shake-up stop the rise of passives?

Will a tech shake-up stop the rise of passives?

'That kind of built-in safety net is hard to beat'

Laura Suter
clock 18 February 2025 • 2 min read