On the left, we see that in the depths of the COVID-19 pandemic, APAC ex-Japan dividend collapsed along with earnings expectations. Regulatory changes also prevented some companies from paying or increasing dividends during this time. However, the V-shaped recovery in many economies has led to a sharp increase in dividend forecasts. These estimates moderated in 2021 as growth expectations peaked.

Meanwhile, a breakdown of dividend yields by region in the right chart shows that APAC ex-Japan has the highest number of high-yielding dividend (more than 4%) companies. In addition, there is greater diversification in terms of sectors amongst companies offering greater than 4% dividend yield in the Asia Pacific ex-Japan index. High dividend stocks can be comprised of more than merely stereotypical defensives.