Five income stocks that could still sparkle after five years of low rates

clock

Today is the fifth anniversary of the Bank of England's historic rate cut to 0.5%, with income stocks having enjoyed huge inflows following aggressive monetary policy, but which still look attractive?

With record low rates for so long, investors have rushed to dividend-paying stocks in an effort to recreate the incomes they once enjoyed from cash, leaving many stocks looking over-valued. However, despite the gains already seen, opportunities remain in the sector, according to Michael Clark (pictured), manager of Fidelity's £706m MoneyBuilder Dividend and £240m Enhanced Income funds. "The uncertain economic environment of recent years, which began with the very deep recession of 2008 and the low rate of growth subsequently, has meant that companies have stockpiled cash, unwilling to...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Equities

Pictet AM launches AI-backed global equity fund

Pictet AM launches AI-backed global equity fund

Using AI for stock selection

clock 18 April 2024 • 1 min read
Robeco to launch equity and credit 'transition investing' funds

Robeco to launch equity and credit 'transition investing' funds

Emerging markets and Asia

clock 15 April 2024 • 2 min read
GB ISA panel: Success for UK equities will be in the details

GB ISA panel: Success for UK equities will be in the details

Video roundtable

Cristian Angeloni
clock 04 April 2024 • 1 min read
Trustpilot