Which stocks will join the divi darlings club next?

ON UK INCOME

The UK equity market is beset with uncertainty at the moment. In Japan, the government's recently launched ‘Abenomics' recovery plan is not quite following the script, leading to volatile equity markets and fears over what the authorities can or will do next.

In the US, improving economic news has caused the Federal Reserve to consider moving quantitative easing (QE) from an infinite phase towards tapering, where the programme may ebb and flow with shorter-term economic news. In the UK and Europe, the appetite for austerity is fading but the switch to more pro-growth policies is yet to be articulated. So where do we see the best opportunities in the market? Well, we note with interest that more and more companies are re-evaluating the returns earned from expansionary capital spending, especially in areas such as mining and food retailing, ...