THE novel coronavirus pandemic,coupled with global socio-political and economic issues, has made activity in the equities market more volatile than ever before.
Higher inflation and interest rates have forced investors to shuffle their investment portfolio and revisit their long-term investment and saving goals.
This, as stock prices plummeted and companies which ordinarily pay out dividends made decisions to refrained from doing so.
In Jamaica some companies are yet to recover fully from the crisis, and those who have are taking a cautious approach.
But, Sterling Investments Limited (SIL) has indicated that it thrives in times of crisis. The investment holding company, which invests primarily in fixed-income investments across the globe, disclosed that it is patiently assessing the market for accretive investment opportunities.
The company said that's how it has managed to continue to pay shareholders a dividend yield of 6.7 per cent.
The company told the Jamaica Observer that it predicted and planned for the volatility of 2022, so its outlook remains positive.
Director for Sterling Investments Limited, Marian Ross-Ammar explained how Sterling has been able to generate a positive cash flow during the ongoing financial volatility, while creating opportunities for shareholders.
"SIL generated positive cash flow and strong income in the first half of 2022 so it is able to pay shareholders a handsome dividend. The low profit is the result of unrealised FX losses due to the appreciation of the Jamaican dollar," remarked Ross-Ammar.
"Management had predicted a rapid rise in interest rates and a decline in the market prices of financial assets. These movements have materialised and have provided good buying opportunities for the management team," she added.