UK Equity Income

Equity income strategies focus on those companies that pay a dividend to shareholders. Companies that prioritise dividend payouts tend to be more established and stable companies, with steady profits, and therefore an equity income strategy will often prove more defensive in falling markets, though may lag a rapidly rising market. Dividends reinvested over time can have a powerful compounding effect. 
In general UK equity income fund managers are striving to find those companies where the dividend is high, stable and secure, and blend them in a portfolio. They will seek to avoid those companies where a dividend cut is likely, as this will depress the share price. Some strategies will put particular emphasis on those companies paying a growing dividend; others will seek a high absolute dividend. There are also smaller companies income strategies, which allow investors to balance income with capital growth. 
Equity income investing is thought to bring its own valuation discipline. The income yield on any stock is expressed as a percentage of the share price. If the share price rises, that income falls and therefore income investors are unlikely to buy companies that are very expensive because the income would be low. 

Introduction to UK Equity Income

Equity income strategies focus on those companies that pay a dividend to shareholders. Companies that prioritise dividend payouts tend to be more established and stable companies, with steady profits, and therefore an equity income strategy will often prove more defensive in falling markets, though may lag a rapidly rising market. Dividends reinvested over time can have a powerful compounding effect. 

In general UK equity income fund managers are striving to find those companies where the dividend is high, stable and secure, and blend them in a portfolio. They will seek to avoid those companies where a dividend cut is likely, as this will depress the share price. Some strategies will put particular emphasis on those companies paying a growing dividend; others will seek a high absolute dividend. There are also smaller companies income strategies, which allow investors to balance income with capital growth. 

Equity income investing is thought to bring its own valuation discipline. The income yield on any stock is expressed as a percentage of the share price. If the share price rises, that income falls and therefore income investors are unlikely to buy companies that are very expensive because the income would be low.

Equity income strategies focus on those companies that pay a dividend to shareholders. Companies that prioritise dividend payouts tend to be more established and stable companies, with steady profits, and therefore an equity income strategy will often prove more defensive in falling markets, though may lag a rapidly rising market. Dividends reinvested over time can have a powerful compounding effect. In general UK equity income fund managers are striving to find those companies where the dividend is high, stable and secure, and blend them in a portfolio. They will seek to avoid those companies where a dividend cut is likely, as this will depress the share price. Some strategies will put particular emphasis on those companies paying a growing dividend; others will seek a high absolute dividend. There are also smaller companies income strategies, which allow investors to balance income with capital growth. Equity income investing is thought to bring its own valuation discipline. The income yield on any stock is expressed as a percentage of the share price. If the share price rises, that income falls and therefore income investors are unlikely to buy companies that are very expensive because the income would be low. 

The tax treatment of investments is subject to tax law and HMRC practice which are subject to change.

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
AXA Framlington Blue Chip Equity Income Z Acc20.1921.3662.5087.393.67Buy
AXA Framlington Monthly Income Z Acc20.1225.7477.09240.874.21Buy
Aberdeen UK Equity Income I Acc24.5814.5747.58177.113.80Buy
Artemis Income I Acc21.3722.8169.816,370.603.95Buy
Aviva Inv UK Equity Income 2 Acc19.8823.0172.33981.093.73Buy
Barclays UK Equity Income R Acc GBP22.3021.1070.05206.103.90Buy
Barclays UK Equity Income S2 R Acc GBP22.5220.8869.94214.004.30Buy
BlackRock UK Income D Acc20.4231.7660.93364.773.85Buy
CF Canlife UK Equity Income C Acc GBP16.5022.0155.93175.883.60Buy
CF Miton UK Multi Cap Income B Inst Acc9.7926.75119.80768.294.16Buy
CF Woodford Equity Income C Acc GBP12.20--9,591.633.27Buy
F&C Responsible UK Income 2 Acc15.7922.5169.80308.233.40Buy
F&C UK Equity Income 2 Acc22.9123.3950.2261.143.20Buy
FP Miton Income B Acc19.6328.7567.69199.273.90Buy
Fidelity Enhanced Income Y Acc10.8916.8650.98502.006.45Buy
Fidelity Enhanced Income W Acc11.0717.5247.53502.006.39Buy
Franklin UK Equity Income W Acc22.6932.5075.99321.913.96Buy
HC Charteris Premium Income Inst Acc31.3514.9823.9711.001.39Buy
HL Multi Manager Income & Growth A Acc20.8225.6573.743,014.104.04Buy
HSBC Income C Acc17.8714.3446.29202.973.72Buy

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
AXA Framlington Blue Chip Equity Income Z Inc20.1721.2654.6987.394.04Buy
AXA Framlington Monthly Income Z Inc20.1125.7377.16240.874.38Buy
Aberdeen UK Equity Income I Inc24.5614.6347.55177.113.80Buy
Allianz UK Equity Income C Inc21.2614.0656.1967.103.97Buy
Artemis Income I Inc21.3822.8269.866,370.604.08Buy
Aviva Inv UK Equity Income 219.8823.0172.25981.093.86Buy
Barclays UK Equity Income R Dis GBP22.2921.0770.16206.104.10Buy
Barclays UK Equity Income S2 R Dis GBP22.5320.7269.61214.004.30Buy
BlackRock UK Income D Inc20.4031.8860.99364.773.85Buy
CF Canlife UK Equity Income C Inc GBP16.4922.7456.74175.883.76Buy
CF Miton UK Multi Cap Income B Inst Inc9.7926.75119.74768.294.27Buy
CF Woodford Equity Income C Inc GBP12.10--9,591.633.34Buy
Castlefield B.E.S.T Income Inst Inc9.7715.8848.0023.834.60Buy
F&C Responsible UK Income 2 Inc15.7622.4469.66308.233.90Buy
F&C UK Equity Income 2 Inc22.7522.1147.0661.143.80Buy
FP Miton Income B Inc19.6528.7767.85199.274.10Buy
Fidelity Enhanced Income W Inc11.0217.4947.37502.007.03Buy
Fidelity Enhanced Income Y Inc10.8516.8546.72502.007.08Buy
Fidelity Enhanced Income W Monthly Inc10.4416.8646.70502.00-Buy
Fidelity Moneybuilder Dividend Y Inc14.7425.3268.631,102.194.21Buy

ETFs

Name6 Months (%)1 Year (%)3 Years (%)5 Years (%)CurrencySector
DB X-Trackers FTSE 100 Short Daily UCITS ETF GBP-7.53-24.87-24.73-40.15GBPEquity - UKBuy
ETFS FTSE 100 Leveraged (Daily 2x) GO UCITS ETF GBP12.2559.2226.9369.79GBPEquity - UKBuy
ETFS FTSE 100 Super Short Strategy (Daily 2x) GO UCITS ETF GBP-14.47-44.06-46.72-69.56GBPEquity - UKBuy
First Trust United Kingdom AlphaDEX UCITS ETF A Acc GBP3.9515.8113.05-GBPEquity - UKBuy
Lyxor UCITS ETF FTSE 250 GBP6.7422.8725.3589.38GBPEquity - UKBuy
Lyxor UCITS ETF FTSE 100 C GBP7.0329.4722.1948.17GBPEquity - UKBuy
Lyxor UCITS ETF FTSE All Share GBP7.0028.1022.0153.01GBPEquity - UKBuy
Ossiam FTSE 100 Minimum Variance UCITS ETF 1C GBP-5.2912.2520.7461.07GBPEquity - UKBuy
SPDR S&P UK Dividend Aristocrats UCITS ETF-1.4516.826.39-GBPEquity - UKBuy
Source FTSE 1006.8629.0121.0746.39GBPEquity - UKBuy
Source FTSE 2506.7422.8625.3389.12GBPEquity - UKBuy
iShares FTSE 100 UCITS ETF Acc7.0029.3922.0247.48GBPEquity - UKBuy
iShares FTSE 250 UCITS ETF GBP6.6922.7924.9888.26GBPEquity - UKBuy
iShares MSCI UK Large Cap UCITS ETF7.7231.5120.0339.64GBPEquity - UKBuy
iShares MSCI UK Small Cap UCITS ETF7.5924.0824.0993.02GBPEquity - UKBuy
iShares MSCI UK UCITS ETF6.8529.0920.2045.12GBPEquity - UKBuy

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