High yields or dividend growth? The fund enjoying the best of both worlds

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Flexible approach, small-cap focus, and cyclical exposure powers Legg Mason Global Equity Income.

An ever-present question for income investors is whether to back companies which pay a high but potentially unsustainable dividend, or focus on those which are able to grow their payouts year on year. The manager of the best global income fund of the last year said the debate over which type of stock performs better is still raging. Consequently, he prefers to switch between types rather than have a fixed style. Paul Ehrlichman, manager of the Legg Mason Global Equity Income fund, has outperformed peers in the increasingly popular space over the past 12 months. “Using our dynamic s...