Blackrock is jumping on the dividend bandwagon. According to a recent Bloomberg article, Blackrock is calling for strong dividend payers to benefit in 2021 from the paucity of income generated in the bond market. Their argument is more in regard to fixed income securities than it is versus other equities, but they are still highlighting the attractiveness of higher-dividend paying equities in a yield-starved market.
Blackrock joins a lengthening list of market participants and commentators making the same call. Will it make a difference? Interest rates have been low and declining for years without a major rotation into dividend stocks (other than 2016). Income-oriented investors appear content, for now, to just harvest capital gains rather than clip coupons from steady-eddie dividend payers. Will 2021 change that? We shall see.