China inside out: onshore and offshore bond opportunities
Consider the income potential of China as inflation looms and rates stay low.
The massive rollout of monetary and fiscal support to taper the markets’ ‘winter chills’ of 2020 has set up a conducive backdrop for dividend stocks1. With the global economy now on the road to recovery, we believe such assets are presenting relatively attractive valuations for multi-income investing.
Why dividend stocks1 could be making a comeback
… and today
Dividend stocks supported by vaccine news3
P/E of MSCI World High Dividend Index versus MSCI World Growth Index4
Three key factors to keep in mind
We believe the valuation gap between dividend stocks and growth stocks could narrow in 2021 on the back of current supportive macroeconomic policies. The key factors for the normalisation of the divergence include:
Active management through all seasons
Equity allocation change of JPMorgan Multi Income Fund8
Dividend stocks1 are becoming relatively attractive multi-income opportunities on the back of current supportive macroeconomic policies. While current valuation is relatively attractive, selectivity is key to help identify dividend-paying companies with sound fundamentals.