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Advisor Insights

Dividend Cuts Build, Hitting Small Caps, but Medalist Dividend Funds Weather the Storm

A look at the U.S. market and some Morningstar Medalists whose payouts have taken a hit.

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This article originally appeared in Morningstar Direct Cloud and Morningstar Office Cloud.

Even as the stock market has recovered from the worst of its coronavirus-driven losses, dividend cuts or suspensions and buyback cancellations continued to mount.

The damage has been heaviest among small companies, especially in the energy and real estate sectors--epicenters of the economic impact of COVID-19. But for Morningstar Medalist funds with dividend strategies, the impact has so far been relatively muted.

Alec Lucas does not own (actual or beneficial) shares in any of the securities mentioned above. Find out about Morningstar’s editorial policies.