Dividend wars: OEICs vs trusts

Investors snapping up shares in UK-listed companies have never had it so good, with dividends payouts last year hitting an all-time high of £67.8bn.

But when it comes to income payouts, who fares better, unit trust and OEICs or investment trusts? Data from independent financial adviser Dennehy Weller & Co (DWC) earlier this year revealed 34% of UK equity income funds cut payouts in 2011. Leigh Harrison and Richard Colwell's £240m Threadneedle's UK Equity Alpha Income fund reduced payouts the most, cutting its dividend by 12.7% to pay out 0.967p in dividends per unit. On average, the sector increased payouts by 4.82%, with ten of the 101 funds managing to grow payouts by more than 10%. However, in stark contrast, data from th...