Here are the sectors with the highest dividend forecasts – UBS

Global Information Technology Stocks (NYSEARCA:IXN) and industrial (EXI) have the highest forecast weighted average dividend over the next 12 months, according to UBS analysts.

UBS analysts’ quantitative data showed the world’s largest dividend increase sectors are intended for information technology (IXN) at 9.7%, followed by industry (EXIT) at 8.1%, and consumer discretionary goods (RXI) at 7.8%.

Global Real Estate (RWO) is forecasting the lowest dividend growth at -2.6%. Communication Services (IXP) had the second lowest growth at 0.7% and Consumer Discretionary (KXI) had the third lowest growth at 2.6%.

In addition, the highest probability of a dividend cut in the next 12 months was recorded in the Materials sector (MXI) at 28%, followed by the Energy sector (IXC) at 27.9%, the Real Estate sector (RWO) at 23.6%, the Communication Services sector (IXP) at 23.4% and the Consumer Discretionary sector (RXI) at 21.5%.

The lowest probability of a dividend cut in the next 12 months was recorded in the Healthcare sector (IXJ) at 17.9%, followed by the Industrials sector (EXI) at 19.1%, the Consumer Discretionary sector (KXI) at 19.2%, the Utilities sector (JXI) at 20.4% and the Financials sector (IXG) at 20.6%.

“The overall probability of a dividend cut is 21.8%,” the report reads. “EM (EEM) and Pacific ex Japan (EPP) still appear to be more exposed to a dividend cut than other regions, while the US appears to be the safest at 6.6%.”