Equity yields remain much higher than government bond yields, and this trend has been heightened by the considerable dividend stress seen within the commodity-related sectors, writes Fidelity's Michael Clark.
My focus is on stability and dividend growth and consequently I have been paying close attention to dividend sustainability. The payout ratio of the market excluding the oil and mining sectors is currently below its historic average, which is relatively reassuring. FTSE 100 surges to 2016 high However, given ongoing dividend risk in several FTSE 100 names, I am increasingly looking towards quality mid-cap stocks to provide income. Cranswick, HomeServe and Beazley for example, are among the mid-cap names I currently hold. Most of the companies held in the fund had a good earnings re...
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