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 Acc16.7123.8174.8498.933.84Buy
AXA Framlington Monthly Income Z Acc22.6129.7895.11262.384.16Buy
Aberdeen UK Equity Income I Acc23.4415.7059.76182.833.40Buy
Artemis Income I Acc19.5827.8580.246,641.353.77Buy
Aviva Inv UK Equity Income 2 Acc19.5530.3584.45967.603.60Buy
Barclays UK Equity Income R Acc GBP19.2726.0979.87164.703.90Buy
Barclays UK Equity Income S2 R Acc GBP19.2025.7979.81187.604.30Buy
BlackRock UK Income D Acc19.4035.0274.83423.193.91Buy
CF Canlife UK Equity Income C Acc GBP15.9128.5970.67194.243.42Buy
CF Miton UK Multi Cap Income B Inst Acc17.2436.71136.15917.753.98Buy
CF Woodford Equity Income C Acc GBP17.6837.87-10,153.902.90Buy
F&C Responsible UK Income 2 Acc15.8430.9282.82322.583.10Buy
F&C UK Equity Income 2 Acc21.2227.4762.6462.503.10Buy
FP Miton Income B Acc15.9632.2276.36200.314.10Buy
Fidelity Enhanced Income Y Acc12.3918.1359.12585.006.19Buy
Fidelity Enhanced Income W Acc12.6018.8055.99585.006.13Buy
Franklin UK Equity Income W Acc21.1533.8590.73409.393.66Buy
HC Charteris Premium Income Inst Acc18.6316.0330.1611.601.39Buy
HL Multi Manager Income & Growth A Acc20.1928.5184.093,205.493.82Buy
HSBC Income C Acc15.7818.3057.21207.303.54Buy

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
AXA Framlington Blue Chip Equity Income Z Inc16.7923.8566.4698.933.96Buy
AXA Framlington Monthly Income Z Inc22.5929.8895.10262.384.27Buy
Aberdeen UK Equity Income I Inc23.4415.7459.76182.833.40Buy
Allianz UK Equity Income C Inc19.1416.6366.9668.774.14Buy
Artemis Income I Inc19.5927.8780.306,641.353.88Buy
Aviva Inv UK Equity Income 219.5530.3684.41967.603.70Buy
Barclays UK Equity Income R Dis GBP19.2826.0580.02164.704.10Buy
Barclays UK Equity Income S2 R Dis GBP19.1925.5679.42187.604.30Buy
BlackRock UK Income D Inc19.4835.1174.94423.193.94Buy
CF Canlife UK Equity Income C Inc GBP15.9029.3771.57194.243.51Buy
CF Miton UK Multi Cap Income B Inst Inc17.2036.94135.92917.754.08Buy
CF Woodford Equity Income C Inc GBP17.6437.84-10,153.902.96Buy
Castlefield B.E.S.T Income Inst Inc11.6518.1460.3727.483.74Buy
Castlefield B.E.S.T Income Charity Inc11.6718.1660.5727.483.74Buy
F&C Responsible UK Income 2 Inc15.7930.8182.63322.583.80Buy
F&C UK Equity Income 2 Inc21.0026.1559.0862.503.70Buy
FP Miton Income B Inc15.9432.2076.41200.314.20Buy
Fidelity Enhanced Income W Inc12.6118.8155.77585.006.62Buy
Fidelity Enhanced Income Y Inc12.3318.1754.62585.006.67Buy
Fidelity Enhanced Income W Monthly Inc12.5418.6655.81585.006.59Buy

Investment Trusts

Name1 Year (%)3 Years (%)5 Years (%)DiscountNAV
Blackrock Income And Growth Investment Trust Plc Ord 1P15.9931.4585.71-4.23209.35Buy
British & American IT PLC Ord22.1234.77116.0943.0766.40Buy
Chelverton Small Companies Dividend Trust plc Ordinary Shares30.9148.79231.33-3.80250.78Buy
Chelverton Small Companies Dividend Trust plc Zero Dividend Preference Shares4.4113.54---Buy
Dunedin Income Growth Investment Trust PLC Ord 25p24.879.3758.15-10.29295.40Buy
Edinburgh Investment Tst plc15.1738.3491.59-6.33811.36Buy
F&C Capital & Income IT PLC Ord27.7336.7382.450.50318.89Buy
Finsbury Growth & Income Trust PLC27.1951.30142.870.44738.22Buy
Invesco Income Growth Trust plc18.9418.2872.69-11.81344.13Buy
JP Morgan Elect Managed Income18.6724.9376.958.99102.30Buy
JP Morgan Income & Capital Trust plc Ord34.2025.08145.06-6.58103.30Buy
JP Morgan Income & Capital Trust plc Package Units19.9115.0885.47-4.54390.20Buy
JP Morgan Income & Capital Trust plc ZDP5.1210.3846.342.07183.70Buy
JP Morgan Claverhouse IT plc26.5227.34104.37-8.31737.30Buy
Lowland Investment Company Ord24.1114.10103.86-6.571,617.30Buy
Merchants Trust PLC24.8511.7074.31-5.34508.41Buy
Miton The Investment Company Ord-6.15-7.1875.51-11.84366.93Buy
Murray Income Trust PLC Ord 25p28.3218.1358.89-8.97879.40Buy
Perpetual Income and Growth Investment Trust plc10.9815.4085.20-7.61434.03Buy
Schroder Income Growth24.1021.6190.55-8.92318.68Buy

ETFs

Name6 Months (%)1 Year (%)3 Years (%)5 Years (%)CurrencySector
Amundi FTSE 100 UCITS ETF C GBP7.6023.3021.1460.42GBPEquity - UKBuy
BMO MSCI UK Income Leaders11.9014.05--GBPEquity - UKBuy
DB X-Trackers FTSE 100 UCITS ETF (DR) - Income 1D GBP7.6623.3821.2860.49GBPEquity - UKBuy
DB X-Trackers FTSE 250 UCITS ETF (DR) 1D GBP11.3018.2833.13103.51GBPEquity - UKBuy
DB X-Trackers FTSE All Share UCITS ETF (DR) 1D GBP8.3322.5823.2466.70GBPEquity - UKBuy
DB X-Trackers FTSE 100 Equal Weight UCITS ETF (DR) 1D GBP10.1119.81--GBPEquity - UKBuy
DB X-Trackers FTSE 100 Short Daily UCITS ETF GBP-8.01-21.04-24.93-45.09GBPEquity - UKBuy
DB X-Trackers FTSE 100 UCITS ETF (DR) 1C GBP7.7423.6121.99-GBPEquity - UKBuy
ETFS 3x Daily Short FTSE 100-22.25-51.96-64.36-GBXEquity - UKBuy
ETFS 3x Daily Long FTSE 10022.1775.9835.39-GBXEquity - UKBuy
ETFS FTSE 100 Leveraged (Daily 2x) GO UCITS ETF GBP14.2146.5227.25104.88GBPEquity - UKBuy
ETFS FTSE 100 Super Short Strategy (Daily 2x) GO UCITS ETF GBP-15.17-37.80-46.57-73.78GBPEquity - UKBuy
First Trust United Kingdom AlphaDEX UCITS ETF B Inc GBP8.297.93--GBPEquity - UKBuy
First Trust United Kingdom AlphaDEX UCITS ETF A Acc GBP8.298.6822.57-GBPEquity - UKBuy
HSBC FTSE 1007.7223.5221.2960.25GBPEquity - UKBuy
HSBC FTSE 25011.2718.1433.20103.09GBPEquity - UKBuy
Lyxor UCITS ETF FTSE 250 GBP11.3418.3133.79104.69GBPEquity - UKBuy
Lyxor UCITS ETF FTSE 100 Monthly Hedged C USD8.01---USDEquity - UKBuy
Lyxor UCITS ETF FTSE 100 C GBP7.7623.6822.1762.05GBPEquity - UKBuy
Lyxor UCITS ETF FTSE All Share GBP8.3522.6323.5067.13GBPEquity - UKBuy

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