Dividends Come Crashing Down as Asian Companies Preserve Cash
- About 23% of MSCI Asia Pacific Index firms cut or scrap payout
- Chinese firms, consumer discretionary businesses lead declines
This article is for subscribers only.
Companies in Asia Pacific are slashing dividends at the fastest pace in more than a decade as the coronavirus pandemic upends business plans and clouds the outlook for earnings.
About 23% of MSCI Asia Pacific Index members have scrapped or reduced payouts this year, according to data through July 20 compiled by Bloomberg. That’s the most for such a period since 2009, when 41% of index companies took such steps in the aftermath of the global financial crisis. Firms listed in China and Hong Kong make up a majority of those scrapping dividends, followed by corporates in Japan and Australia.