BlackRock Sees ‘Advantageous’ Trade in Dividend Stocks Next Year
- Company payouts may beat bonds ‘for some time’: DeSpirito
- Expectations for dividends have stabilized in recent months
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The stocks that appeal to investors looking for a steady stream of income are back in favor and may continue to beat bonds in a world of historically low rates, according to BlackRock Inc.
After several companies cut or suspended their dividends earlier in the year and “arguably scared investors away,” expectations for payments have stabilized, said Tony DeSpirito, chief investment officer of U.S. fundamental active equity at the world’s biggest asset manager. That’s good news for high-dividend firms at a time when interest rates around the globe are set to stay low for longer, he added.