I'm Jared Hoff, Portfolio Manager at Federated Hermes.
In the midst of the pandemic and shutdown, what's the key takeaway when it comes to international dividends?
In the midst of the pandemic, what's mattered to the market, at least outside the U.S. where dividends are more central to the investment thesis, what's mattered to the market is the same thing that matters to our team all the time, it's the sustainability of the dividend. And I think that puts the active manager at a distinct advantage here. First off, obviously, to deliver an income stream that's reliable, but also that focus on the dividend can help the active manager protect capital and separate the value traps from the value opportunities.
Disclosure: Views are Aug. 7, 2020 and are subject to change based on market conditions and other factors. These views should not be construed as a recommendation for any specific security or sector. There are no guarantees that dividend paying stocks will continue to pay dividends. In addition, dividend paying stocks may not experience the same capital appreciation potential as non-dividend paying stocks. International investing involves special risks including currency risk, increased volatility, political risks, and differences in auditing and other financial standards. Stocks are subject to risks and fluctuate in value. Past performance is no guarantee of future results. Federated Equity Management Company of Pennsylvania (8/20), 20-40379