A broad range of businesses that tend to pay higher dividends are seeing their prospects improve as economies reopen.
Utilities like the UK's National Grid, Spain's Iberdrola and Italy's Enel are tapping into higher demand for electricity amid a shift to renewable energy sources, a trend that is set to transform the industry over the next few years. Switzerland's Novartis is also seeing a rebound in its dermatology and ophthalmology divisions as health care consumption normalises, and US-based Coca-Cola and Pepsi are seeing an uptick in sales around the globe.
Are dividends making a great comeback in H2 2021?
We hear from Julie Dickson, equity investment director at Capital Group, about why dividend companies have been so overlooked in recent years and why they post-pandemic recovery has reinvigorated this part of the market over the past 12 months and may be once again essential for income seekers in H2 2021.