Which global stocks offer high-quality dividends with low cut risk?
Investing.com -- UBS has published its latest global high-quality dividend stock list, identifying names across sectors and regions that its quantitative models flag as unlikely to cut their payouts, with U.S. equities standing out.
Analyst Amanda Belcaid said UBS screened for stocks that appear high quality relative to peers, pay a dividend and carry a low probability of cutting it, before submitting the shortlist to sector analysts for further scrutiny.
The resulting names span communication services, consumer discretionary, energy, financials, healthcare, industrials, technology, materials, real estate and utilities.
Ten of the top stocks are Omnicom Group, Domino's Pizza, Exxon Mobil, Chiba Bank, UnitedHealth Group, Aena, ASE Technology Holding, Aluminum Corporation of China (H-share), Digital Realty Trust and DTE Energy. Dividend yields across the list range from 2.3% at Domino's Pizza to 4.8% at Aena.
On the macro picture, UBS modeled an overall 17.8% probability of a dividend cut across regions and sectors.
"The U.S. continues to be the safest region for dividends, in our view," Belcaid wrote, with the probability of a cut at just 6.2%. Emerging markets and the energy sector carry the highest cut risk, at 23.0% and 26.3%, respectively.
Japan leads on dividend growth, with UBS forecasting a growth rate of 12.8%, while energy stocks in Pacific ex-Japan are projected to see the steepest decline at -19.5%. High-yielding stocks outperformed low-yielding peers in all regions over the past quarter, with Japan and the U.S. leading the way.
