UK income

UK economy showing signs of distress

'Big adjustment in markets'

Those adapting to disruptive environment

Higher returns expected going forward

Low interest rate environment

Quantifying pessimism and complacency

Expect to see more special dividends this year

Political and market shocks

The current stockmarket cycle, which began in the depths of despair in March 2009, is now the third longest in history.

Long-term asset return studies, such as the Barclays Equity Gilt Study, confirm that dividends - and in particular dividend reinvestment - are the drivers of long-term total returns from UK equities.