Seeking refuge in dividend stocks, aye or nay?

TheStar Sat, Jun 25, 2022 07:00am - 1 year View Original


Speaking with StarBizWeek, MIDF Research head Imran Yassin Md Yusof agrees that dividend yields in the local stock market look more attractive, following the recent selldown in equities.

IN times of a market meltdown where capital appreciation is highly uncertain, dividend stocks provide refuge to investors wanting to minimise risk.

In fact, some of these stocks turn extra enticing amid a selldown, as their dividend yields increase on the back of lower share prices.

However, with fears of a recession mounting and the risk of corporate earnings potentially taking a hit, not many companies would be able to offer a sustainable dividend payout.

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