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Sean Anthony Eddy
Global IT stocks (NYSERCA:IXN) and industrial stocks (EXI) have the highest weighted average dividend growth forecast over the next 12 months, according to UBS analysts.
Quantitative data from UBS analysts showed that the highest dividend growth globally The sectors are information technology (IXN) with 9.7%, followed by industrialists (Success) by 8.1%, and discretionary consumption (RXI) by 7.8%.
The global real estate sector (RWO) had the lowest dividend growth forecast at -2.6%. The communications services sector (IXP) had the second lowest at 0.7%, and the consumer staples sector (KXI) had the third lowest at 2.6%.
Additionally, materials (MXI) had the highest probability of a dividend cut over the next 12 months at 28%, followed by energy (IXC) at 27.9%, real estate (RWO) at 23.6%, communication services (IXP) at 23.4% and consumer discretionary (RXI) at 21.5%.
The lowest probability of a dividend cut for the next 12 months was in the healthcare sector (IXJ) at 17.9%, followed by the industrial sector (EXI) at 19.1%, consumer staples (KXI) at 19.2%, utilities (JXI) at 20.4% and financials (IXG) at 20.6%.
“The overall probability of a dividend cut is 21.8%,” the report said. “Emerging markets (EEM) and Pacific ex-Japan (EPP) continue to appear to be at higher risk of a dividend cut than other regions, while the US appears to be the safest at 6.6%.”
