Providing a stabilising impact: Dividends still matter even after pandemic blues

According to Link Group, underlying dividends fell by 38% in 2020. This has led some commentators to question whether dividends really matter any more. Even before the pandemic, higher growth companies were outperforming, as interest rates declined. This was a tricky environment for 'value' investors, who typically focus on fundamental metrics such as dividends, but also earnings, asset values and cash flows. However, it is helpful to take a longer term view, to put the current situation in perspective. Dividends play an important role in the market. In the past four five-year peri...