2020 was a brutal year for investors in search of income, with dividends slashed or cancelled entirely as companies increased the cash buffer required to weather COVID 19.

But after half a year in the wilderness, dividends are poised to make a comeback in 2021 as companies enter a post-pandemic period of profitability.

Argo Investments is the second-largest listed investment corporation in Australia, first listed on the stock exchange in 1948 and overseeing almost $6 billion worth of investments, and MD Jason Beddow says investors favouring companies that pay strong dividends have something to look forward to.

“We think July to August 2020 was hopefully the low for dividends being paid to shareholders,” he told Brooke Corte.

“Over the next 12 to 18 months, we’d expect them to increase quite significantly,”

Click play to hear the full interview: