The thesis
High equity income combined with dividend growth has been a consistent and reliable strategy for investors for decades, especially in the UK. Today, its relevance to income and wealth creation, especially for older age cohorts, is arguably overlooked. In very simple terms, the combination of a high, reliable dividend yield, often in excess of government or high-grade corporate bond yields, combined with above-inflation dividend increases year on year, can compound very effectively for those investors who are looking to supplement income from employment or in retirement.
This playlist brings together a range of high-yielding, predominantly UK companies with strong balance sheets and reliable cash flows, which correlate with dividend sustainability and growth. Notable features are UK financials and property companies, construction, consumer goods and retailers, along with a couple of German car companies and a US branded consumer company.
Key themes
- UK financials — including banks, insurance and pension companies and fund managers
- UK property companies covering the office and retail markets
- UK construction businesses, consumer goods and retailers
- International businesses including two auto manufacturers and a leading US consumer brands business
