The great UK dividend hunt - a narrowing focus

At times of market uncertainty, fund managers tend to return to basic measures of evaluating the hol...

At times of market uncertainty, fund managers tend to return to basic measures of evaluating the holdings within their portfolios, such as yield. As the risk-free yield on cash has sharply diminished over the past six months, the attraction of secure dividend income has commensurately increased. But what is 'safe'? Some of the stalwarts of the past that have dependably paid out, even during past recessions, such as Lloyds TSB, can no longer be relied upon. Conversely, some companies have outperformed the market and been accorded a rating premium as it appears their dividends are safe, b...