The interest in global dividend-focused equity funds has increased in 2025 because investors are putting in $23.7 billion during the first half of the year according to LSEG Lipper data. The demand for income strategies experienced a two-year decline until investors returned to them after the tech-driven bull market.
Stocks with stable dividend payments have become more popular among investors because the technology sector’s growth has slowed down and macroeconomic uncertainty has increased. The defensive nature of utilities and energy sectors has led to their outperformance of technology stocks during the first half of the year.
The expectation of rate cuts has become a major factor in this market shift. The current bond yield environment makes dividend stocks more appealing because they provide income without requiring investors to commit their capital to fixed-income investments.
The market trend shows investors are moving toward preserving capital while seeking reliable cash flow in their portfolios. Fund managers predict dividend strategies will attract more investors if central banks implement additional policy easing or when geopolitical risks push investors toward lower-volatility assets.
