Embattled investors will be rewarded with a bumper spring payday despite the worst quarter for global stocks in years.
Dividends are set to soar to as much as $400bn (£285bn) in the coming months, easing the pain caused by a turbulent start to the ear on markets.
Wall Street analysts estimate that dividends could climb to a monthly record of $174bn in May. Payouts are expected to be driven higher by buoyant global growth and the savings generated from Donald Trump’s huge corporate tax cuts.
Morgan Stanley calculated $400bn is set to be paid into investor accounts between March and May in what is typically a high season for dividend payments.
The investment back argued that the payout will provide “some welcome (temporary) relief” for investors amid a surge in volatility on markets.
A dividend boost will help to bolster investor’s returns after the global Bull Run struggled to maintain its momentum in 2018. The FTSE 100 suffered its worst quarter since 2011 in the first three months of the year, slipping 8.2%, while the Dow Jones – the US blue-chip index – snapped a nine-quarter winning streak.
Stocks have tumbled this year amid fears central banks will tighten monetary policy more quickly than anticipated. The prospect of tit-for-tat tariffs between the US and its major trading partners becoming a full-blown trade war has also made investors nervous.