Deep Dive: UK equity income sector 'particularly favourable'

‘UK yields higher than most’

The outlook for the UK equity income sector is “particularly favourable”, experts say, as the market shifts towards value investing and dividends continue to grow.

David Jane, fund manager on the Premier Miton Macro Thematic Multi Asset team, said that the attraction of the UK equity income sector "stems from the UK's long history as a market where the commitment to dividends was greater than most others". He attributed this to factors such as a favourable tax treatment of dividends, periods of high inflation and, until recently, a bedrock of equities in pension schemes. In the past this has led to a dividend concentration issue in UK income, with many funds holding the same handful of high paying stocks. The sector was one of the worst hit d...