Sean Anthony Eddy
Global stocks in information technology (NYSEARCA:IXN) and industrials (EXI) have the highest dividend weighted average forecast growth over the next 12 months, according to UBS analysts.
Quant data by UBS analysts showed that the largest dividend growth within the global sectors is for information technology (IXN) at 9.7%, followed by industrials (EXI) at 8.1%, and consumer discretionary (RXI) at 7.8%.
Global real estate (RWO) has the lowest dividend growth forecast at -2.6%. Communication services (IXP) had the second lowest at 0.7%, and consumer staples (KXI) has the third lowest at 2.6%.
In addition, materials (MXI) had the highest probability of a dividend cut for 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 health care (IXJ) at 17.9%, followed by industrials (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. “EM (EEM) and Pacific ex. Japan (EPP) continue to appear at higher risk of a dividend cut than the other regions, while the U.S. appears to be the safest at 6.6%.”