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...

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