Mark Williams: Why Asia can offer shelter to income investors

Major dividends being cut in developed markets

Income investors in developed stockmarkets could face very tricky conditions this year, with UK and European markets experiencing hefty dividend cuts.

We think that Asian markets are better positioned to provide some income shelter. This is in part because many Asian countries were better prepared post-SARS. They tended to be swifter to contain the virus - with potentially less economic damage - and were quicker in re-opening their economies. This should mean that earnings are less affected than in Western economies.  China beyond coronavirus: Sorting the traps from the opportunities Dividends should also be more resilient. Ratios of Asian dividend payments out of earnings were already at a lower level than in other regions prior...