UK dividends set to recover (If you know where to look)

There is good news for UK Equity Income investors: UK equity dividends are staging a speedy recovery and we believe they will grow from here.

However, the disappointing news for some is that it may not be in the stocks your current equity income fund holds. Even if you spread your money across several of these traditional funds, chances are you will remain heavily exposed to a handful of large companies which may struggle to drive dividends back to pre-pandemic levels.   Many traditional UK equity dividends have had a torrid time over the past year with pay-outs falling by 44% in 2020. Whilst optimism is returning, and we expect a stabilisation in pay-outs this year, many traditional dividend-paying stocks will not be in a pos...