UK - Slower growth puts high quality stocks under the spotlight

High-yielding stocks are few and far between in the UK stock market at present. FTSE All-Share yiel...

High-yielding stocks are few and far between in the UK stock market at present. FTSE All-Share yields peaked at 4% in 2003 as the market bottomed, but today it yields just 2.7%. Just slightly over 10% of stocks in the Index yield more than 4% today, and most of these are banking or retail companies. Much of the reason for this scenario is that investors have experienced a period of historically low inflation and interest rates. As interest rates have fallen, so bonds and other income-producing assets, such as high-yielding equities, have been re-rated. Areas of the market including infras...