The economic impact of the coronavirus pandemic should not be underestimated.
It is, in my opinion, likely to produce a severe recession in the UK as well as a global recession, and has already led to a swathe of dividend cuts and suspensions across UK and international markets.
How then should dividend investors deal with this?
If you’re risk averse, you could run to the safety of cash. If you’re risk seeking, you could remortgage your house and invest it all in ‘bargain’ shares.
Personally I prefer to stick to the basics, by which I mean a set of principles that apply irrespective of space and time, crisis or boom.
And for me, the most important principles are diversity, robustness
