At the Citywire New Model Adviser Retreat in September, we conducted a poll to find out where advisers will be increasing allocations in equity and bond sectors over the next six months. Of the 67 advisers who answered our equities question, 33% said they will be allocating to UK equities.
PEGwatch was asked to give a view on the outlook for the UK market, more particularly for the type of shares we like to hold in Slater Growth and Slater Recovery. To discuss this it’s easier to take the UK mid-cap index as a proxy. For starters, below we compare the growth in earnings per
Last time DividendWatch discussed how investors might weigh up the competing claims of immediate yield versus future growth in dividends. We asked, what would you rather… Company A: yielding 6%, growing its dividend at 2% or Company B: yielding 2% but growing its dividend at 6%? We demonstrated that it would take 30
“Do you know the only thing that gives me pleasure? It’s to see my dividends coming in”. Most modern income fund managers, whilst quietly agreeing with these words attributed to John D Rockefeller, would perhaps add that a growing dividend is especially pleasurable. To that end, most income investors seek out companies that provide a
Inflation rages, a government imposes heavy charges on homeowners for ideological reasons, disputes rumble on with Europe, a war is in the offing and the prime minister is tottering. Sounds familiar. Actually, this all happened in 1990. Back then it was the Poll Tax which was seen as ideology gone mad; this time the panoply
Baby steps The Bank of England has now increased interest rates in both of its last two meetings, taking base rates to 0.5%. The 10 year gilt yield has also moved up and is now over 1.0%. These are still vanishingly thin levels of interest by any standard. The UK equity market yields much more
Major Miners The Mining sector contributed 37% to the total dividends paid by the UK equity market in the last quarter*. This was more than the next five largest sectors combined. The market’s top three dividend payers, ranked by absolute pound sterling amounts handed over, were the Major Miners: Rio Tinto, BHP Group and Anglo
Annus Horribilis 2020 was a disastrous year on many fronts. It was certainly terrible for UK dividends. The lock-down prompted firms to batten down the hatches and dividends were cut across the board. In aggregate the amount of dividend paid by UK corporates fell by 43%. There were very few hiding places. Lots of companies