'Exciting' potential for dividend growth in coming years

ON UK GROWTH

Matterley's Henry Dixon on why investors should not ignore the equity market

After a stunning 2009, UK equities have continued to impress. Looking at the most frequently used benchmark for the sector, the FTSE All Share Total Return, not only is it within touching distance of the high in 2007, it is now c33% higher than it was at the end of 1999. Income reinvested is therefore a crucial component of equity returns and, in a low interest-rate world, investors should not ignore what is on offer from the equity market. The current yield on the UK market is 3.09%, which, as a starting point, is higher than that of UK gilts. I say starting point as we are excited a...