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 Acc20.0721.3269.0888.573.66Buy
AXA Framlington Monthly Income Z Acc16.6426.0586.36240.914.23Buy
Aberdeen UK Equity Income I Acc25.8413.3453.16176.673.90Buy
Artemis Income I Acc19.0621.5475.356,438.163.96Buy
Aviva Inv UK Equity Income 2 Acc18.5322.8877.97977.933.75Buy
Barclays UK Equity Income R Acc GBP17.8620.1877.40206.103.90Buy
Barclays UK Equity Income S2 R Acc GBP17.8719.9077.04214.004.30Buy
BlackRock UK Income D Acc20.0330.5168.55364.663.85Buy
CF Canlife UK Equity Income C Acc GBP13.8720.9962.17172.493.60Buy
CF Miton UK Multi Cap Income B Inst Acc7.2527.19130.38754.814.20Buy
CF Woodford Equity Income C Acc GBP9.38--9,567.943.29Buy
F&C Responsible UK Income 2 Acc11.2219.4777.23306.113.30Buy
F&C UK Equity Income 2 Acc23.4720.7955.5161.263.10Buy
FP Miton Income B Acc17.7428.9170.74198.563.90Buy
Fidelity Enhanced Income Y Acc9.8915.7953.88503.006.48Buy
Fidelity Enhanced Income W Acc10.0916.4750.33503.006.42Buy
Franklin UK Equity Income W Acc24.6931.6882.80318.334.09Buy
HC Charteris Premium Income Inst Acc33.7115.0427.1211.001.39Buy
HL Multi Manager Income & Growth A Acc16.9924.0078.722,994.664.09Buy
HSBC Income C Acc17.4514.7852.84206.743.69Buy

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
AXA Framlington Blue Chip Equity Income Z Inc20.0821.4161.1188.574.00Buy
AXA Framlington Monthly Income Z Inc16.6526.0786.57240.914.41Buy
Aberdeen UK Equity Income I Inc25.8513.3953.15176.673.90Buy
Allianz UK Equity Income C Inc17.4212.5062.9266.343.98Buy
Artemis Income I Inc19.0721.5675.396,438.164.09Buy
Aviva Inv UK Equity Income 218.5322.8977.87977.933.87Buy
Barclays UK Equity Income R Dis GBP17.8220.1377.50206.104.10Buy
Barclays UK Equity Income S2 R Dis GBP17.8419.6976.62214.004.30Buy
BlackRock UK Income D Inc20.0230.5668.64364.663.85Buy
CF Canlife UK Equity Income C Inc GBP13.8721.7163.02172.493.71Buy
CF Miton UK Multi Cap Income B Inst Inc7.2627.20130.41754.814.32Buy
CF Woodford Equity Income C Inc GBP9.28--9,567.943.36Buy
Castlefield B.E.S.T Income Inst Inc7.1916.0154.1723.104.60Buy
F&C Responsible UK Income 2 Inc11.2219.5077.15306.114.00Buy
F&C UK Equity Income 2 Inc23.2419.5552.2361.263.70Buy
FP Miton Income B Inc17.7728.9470.93198.564.10Buy
Fidelity Enhanced Income W Inc10.0916.4150.20503.007.07Buy
Fidelity Enhanced Income Y Inc9.8115.7949.51503.007.12Buy
Fidelity Enhanced Income W Monthly Inc9.4715.8149.47503.00-Buy
Fidelity Moneybuilder Dividend Y Inc13.7224.7071.381,090.574.24Buy

ETFs

Name6 Months (%)1 Year (%)3 Years (%)5 Years (%)CurrencySector
DB X-Trackers FTSE 100 Short Daily UCITS ETF GBP-11.54-26.50-23.47-42.97GBPEquity - UKBuy
ETFS FTSE 100 Leveraged (Daily 2x) GO UCITS ETF GBP22.5763.3222.8086.61GBPEquity - UKBuy
ETFS FTSE 100 Super Short Strategy (Daily 2x) GO UCITS ETF GBP-21.73-46.83-45.06-72.49GBPEquity - UKBuy
First Trust United Kingdom AlphaDEX UCITS ETF A Acc GBP8.6912.8813.46-GBPEquity - UKBuy
Lyxor UCITS ETF FTSE 250 GBP11.0016.5221.5697.67GBPEquity - UKBuy
Lyxor UCITS ETF FTSE 100 C GBP11.8831.5720.2055.41GBPEquity - UKBuy
Lyxor UCITS ETF FTSE All Share GBP11.7328.3919.7160.25GBPEquity - UKBuy
Ossiam FTSE 100 Minimum Variance UCITS ETF 1C GBP-2.6114.7320.2566.07GBPEquity - UKBuy
SPDR S&P UK Dividend Aristocrats UCITS ETF4.5115.646.58-GBPEquity - UKBuy
Source FTSE 10011.6931.1019.1153.59GBPEquity - UKBuy
Source FTSE 25010.9916.5021.5497.38GBPEquity - UKBuy
iShares FTSE 100 UCITS ETF Acc11.8531.4820.0554.69GBPEquity - UKBuy
iShares FTSE 250 UCITS ETF GBP10.9516.4021.2196.47GBPEquity - UKBuy
iShares MSCI UK Large Cap UCITS ETF12.2334.6617.7746.31GBPEquity - UKBuy
iShares MSCI UK Small Cap UCITS ETF11.8018.1020.49103.90GBPEquity - UKBuy
iShares MSCI UK UCITS ETF11.5231.0718.0551.97GBPEquity - UKBuy

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