Aberdeen Asset Management's head of North American equities Paul Atkinson is backing US blue chips over cyclicals to deliver dividend growth ahead of the market.
Atkinson, manager of the recently revamped £210m North American Income trust, formerly the Edinburgh US Tracker trust, has positioned a third of the portfolio in the defensively focused consumer staples, telecom and utility sectors. The manager said the balance sheets of a number of defensive blue-chip firms, such as Johnson & Johnson, are the strongest they have been in 50 years, with high levels of cash. This will result in bumper dividend growth over the next couple of years, he predicted. Atkinson added shareholders are set to be rewarded, as historically US dividend growth has la...
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