Were Dividends Down in 2020?

Global dividends fell sharply in 2020 due to the coronavirus pandemic, with dividends declining 12.2% in 2020 to $1.26 trillion. As the international public health crisis dominated and curtailed business activity, dividend cuts totaled $220 billion between the second and fourth quarters of 2020.

Why have dividends gone down?

Dividends are usually cut due to factors such as weakening earnings or limited funds available to meet the dividend payment. ... For example, if it has no money to pay off its debts because it is paying out too much in dividends, the company could default on its debts.

Are dividends declining?

Dividends are down, yes, after years of steady and substantial gains. But with little more than a month to go in 2020, the total decline for dividends in the benchmark S&P 500 stock index is likely to have amounted to less than 1 percent — 0.67 percent, more precisely.