Dividend payments will take a long time to recover

Companies are gradually resuming dividend payouts, but we can expect only a modest rebound in 2021, says Cris Sholto Heaton.

The dividend drought is easing. Companies that suspended dividends at the peak of the crisis are slowly resuming payouts. Housebuilder Bellway was the latest to do so this week, when it reported strong results showing a solid recovery in sales. Real estate investment trust British Land announced a fortnight ago that rent collection rates had risen to 69% and that it plans to restore a semi-annual dividend (previously it paid quarterly). Others, such as drinks firm Diageo, which was seen as a possible cutter, will keep payments unchanged, while defence group BAE Systems last month paid the final dividend it skipped in June as a special interim dividend.

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Cris Sholto Heaton

Cris Sholto Heaton is an investment analyst and writer who has been contributing to MoneyWeek since 2006 and was managing editor of the magazine between 2016 and 2018. He is especially interested in international investing, believing many investors still focus too much on their home markets and that it pays to take advantage of all the opportunities the world offers. He often writes about Asian equities, international income and global asset allocation.

Cris began his career in financial services consultancy at PwC and Lane Clark & Peacock, before an abrupt change of direction into oil, gas and energy at Petroleum Economist and Platts and subsequently into investment research and writing. In addition to his articles for MoneyWeek, he also works with a number of asset managers, consultancies and financial information providers.

He holds the Chartered Financial Analyst designation and the Investment Management Certificate, as well as degrees in finance and mathematics. He has also studied acting, film-making and photography, and strongly suspects that an awareness of what makes a compelling story is just as important for understanding markets as any amount of qualifications.