Income growth divide re-emerges

fund managers split over value of higher-yielding stocks over coming year with some arguing for switch to growth

A genuine growth value divide has appeared among UK fund managers, with many split over the value of higher-yielding stocks. According to Tineke Frikkee, manager of the Newton Higher Income fund, dividends are the key to total returns, increasing the attractiveness of income-yielding stocks. On the other hand, Gartmore's Chris Burvill, who runs the Cautious Managed fund, believes higher-yielding stocks are not the easy wins they used to be for contrarian investors, and it may be time to start considering growth opportunities instead. Quoting the Barclays Capital Equity Gilt Study 2004, ...