Low growth means raised dividends

Fund manager's comment

Companies cut costs after the technology bubble burst, creating conditions for an improvement in pro...

Companies cut costs after the technology bubble burst, creating conditions for an improvement in profits when the economy recovered. With balance sheets now stronger and the spreads on corporate bonds over gilts considerably reduced, the stage is set for equity holders to claim their share of the improvement in company fortunes. However, the markets have gone through a challenging period. The UK manufacturing sector and retail sales have been weak, and growth in the US and Europe appears soft. There is a growing mood that the next move in interest rates could be down. This may provide ...