What's going on?

Dividends � shambling through this weird apocalypse we call 2020 as clumsily as the rest of us � fell by the largest amount since records began last quarter. Gaaaaaaains.

What does this mean?

While second-quarter dividends still added up to almost $400 billion, that quarterly total was � according to investment manager Janus Henderson � the second-lowest since 2012. That�s thanks to a 19% quarterly decline versus the year before. And�that’s thanks to the 27% of companies that cut their dividends, half of which suspended them altogether�

As the home of the world�s biggest stock market, the US was investors� focus. But the UK and Europe had their fair share of trouble too: their payouts fell by around 40%, while France � the eurozone�s biggest source of dividends � saw its total fall to its lowest level in ten years. Switzerland and Japan made it through in one piece, mind you: both countries’ dividends barely changed.

Why should I care?

For you personally: Risk and Morty.

When you buy a stock, you take on the risk it�ll fall in value. Things like dividends and share buybacks, then, are ways companies reward you for taking a chance on them rather than almost-risk-free investments like government bonds. But with dividends dwindling and last quarter�s US share buybacks nearly halving, you mightn�t just want to rely on a company�s share price rise to make a profit � especially while stocks are at record highs.

The bigger picture: Regrets, he�s had a few.

One of US stocks� biggest critics in the investment world had a change of heart this week: he no longer reckons they�re worth ditching right now, partly because unlimited central bank support is keeping valuations propped up. But it�s not like investors were paying much attention to his concerns or dividends� turmoil anyway: they�ve been buying up stocks in their droves.