Don't fall into the well: four income stocks outside oil

Robust dividends

clock • 4 min read

As UK inflation reaches a 30-year high, investors are having to work harder to find income. Many have been flocking to oil and mining stocks, where dividends have soared in recent weeks, in search of a short-term fix.

This is a very imprudent course of action. These cyclical sectors are prone to volatility, as evidenced by dividends cuts during Covid-19, and the future of fossil fuels is a foregone conclusion. Instead, investors should look to other areas that can consistently deliver robust dividends. We target companies in structurally growing sectors, with a competitive advantage providing them with prolonged pricing power. We are confident these businesses will maintain healthy dividends and dividend cover, which will underpin our yield target of 4% over the long term. Driving higher dividends ...

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


More on UK