Global investing pays dividends

There is a growing trend by listed companies across the globe to increase the amount they pay out to shareholders in the form of dividends. Such distributions can be used as an indication of a cashflow because a company can choose between the proportion of profits to retain and how much to distribute as dividends

Most companies distribute dividends each year, and it should be noted that a company will pay its investors a dividend only after it has become profitable and can generate stable 'surplus' cashflow. Typically, once a company management has committed to a certain level of dividend it is unlikely to decrease or omit dividend distributions as this could negatively affect its share price. Consequently, dividends can provide a stable income stream for investors. In the past, the UK's reputation as a leading source of dividend yield attracted the interest of investors from around the world. Tod...