Deriving a sustainable income from dividends

Investors who want to get an income from their trust need to choose their vehicle carefully ensuring that the income and yield are sustainable

Dividends have always been an important component of the return from investing in UK equities. Consequently the UK stock market has historically been one of the main markets for investors seeking income. This is changing and there is now a greater propensity globally for companies to pay dividends. The latest indication is that over the past 10 years the number of companies worldwide paying dividends in excess of 3% has grown by over 40% and the indication is that this trend will continue. It is this that has led to the launch of a number of overseas income funds, such as Aberdeen Asian Inc...