The universe of above-average yielding stocks in the UK is dynamic, and over time whole sectors and individual companies move in and out of that universe.
To illustrate such changes, we set out below some sectors and stocks that have experienced significant changes in their dividend yields in relation to the market over the past 10 years. We use the 31 May 2000 and the 31 May 2010 as our data points, and Thomson Reuters Datastream is our main source for this data. To set the backdrop, in May 2000 base rates were 5% and the FTSE All-Share Index dividend yield was 2.2%; in May 2010, base rates were 0.5% and the market yield was 3.5%. Interestingly, various sectors had similar absolute dividend yields in 2010 as they did in 2000 – for exam...
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