Income opportunities: A regional comparison

INCOME

Ben Lofthouse and Andrew Jones, co-managers of the Henderson Global Equity Income fund, give their outlook for dividend growth across the globe.

The prevailing low interest rate environment is driving investors to search for income-generating assets. The resulting increased demand for bonds has led to a fall in bond yields and since last year, risk appetite for equities has improved. Given that many equity markets have rallied considerably since last year, we are often asked whether it is still possible to find good yield opportunities in equities. The answer is yes − equities remain good value and yields remain significantly above many other asset classes. An easy criticism of this simple comparative yield measure is that ...