Monday, May 13, 2019

To see where stocks are headed, try following dividends

“Get dividends right and you will get share prices right,” Robert Buckland, Citigroup Inc.’s chief global equity strategist, wrote in a report Thursday. Buckland cited the relationship between the MSCI All-Country World Index, tracking developed and emerging markets, and the gauge’s payout on a per-share basis. The chart is based on a similar comparison. MSCI’s index is due for a 13% gain in the next two years, he wrote, as long as the link to payouts stays intact and “consensus dividend forecasts” are accurate.

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