SLI's Robertson: Five of the best for income

Standard Life Investments' Karen Robertson reveals five stocks in her £881m UK Equity High Income fund she believes will beat earnings forecast and post strong dividend growth this year.

Xstrata - We have 10% of the fund in miners, which is overweight compared to our peers, but obviously an underweight compared to the FTSE 350. Most of the funds in the UK Equity Income sector have 0% exposure to miners as they traditionally pay low dividends. However, we believe the sector is the cheapest in the market and is heavily positioned to is positioned to outperform on a PE of 5-6x, and there is significant cash on miners' balance sheets. We are finding Xstrata very cheap and it is our biggest play on the mining field, making up 4.3% of the fund. Xstrata is generating lots o...