4 Dividend Mutual Funds For 2019

Recently, the International Monetary Fund (IMF) slashed its global economic forecast for 2019 as well as the next year. The body opined that slowdown in Europe and certain emerging markets will likely result in a global economic slowdown. Further, China’s economic woes and “No Deal” Brexit were the two other factors that resulted in lackluster projections by the IMF.

Companies that pay consistent dividends are unperturbed to economic uncertainty. These companies have steady cash flows and are mostly financially stable companies. This helps stock prices to increase gradually over a period of time.

Moreover, dividends are less taxed compared to interest income, which helps a portfolio grow at a compounded rate and offers protection against earnings manipulation. Adding dividend mutual funds to one’s portfolio thus seems prudent.

IMF Presents Bleak Global Forecasts for 2019 and 2020

The IMF has revised its global forecast for 2019 and 2020 to 3.5% and 3.6%, respectively, 0.2% and 0.1% lower than the projections released in October. The IMF had last made such a reduction in October, citing the ongoing U.S.-China trade war as a major issue.

The latest cuts are also significant as these were announced ahead of the annual World Economic Forum, which began on Monday at Davos, Switzerland.

China’s Economic Growth Slowest in 28 Years

The latest growth data released by the Chinese government further dampened investors’ sentiments. Per the data, China’s economy expanded 6.6% last year. This is the most sluggish pace of growth that China has witnessed since 1990. The slump, however, was in line with most analysts’ expectations, given China’s participation in the trade war against the United States.

Government Shutdown Crosses a Month

The partial U.S. government shutdown stretched for the 33rd day on Jan 24. Discussions between the Trump administration and congressional Democrats have been inconclusive so far despite Trump’s colleagues urging him to strike a deal.

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