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 Acc7.9021.0062.4984.493.81Buy
AXA Framlington Monthly Income Z Acc8.0023.2475.91224.594.31Buy
Aberdeen UK Equity Income I Acc11.879.9344.25171.403.80Buy
Artemis Income I Acc8.7521.9169.976,265.594.14Buy
Aviva Inv UK Equity Income 2 Acc8.5620.8771.29923.163.95Buy
Barclays UK Equity Income R Acc GBP7.2021.4271.02206.103.90Buy
Barclays UK Equity Income S2 R Acc GBP7.0421.2170.91214.004.30Buy
BlackRock UK Income D Acc6.2129.3660.20350.694.04Buy
CF Canlife UK Equity Income C Acc GBP4.1120.9955.72168.16-Buy
CF Miton UK Multi Cap Income B Inst Acc1.6129.34128.29742.924.35Buy
CF Woodford Equity Income C Acc GBP0.28--9,217.733.43Buy
Elite Charteris Premium Income Inst Acc17.9411.3021.9011.001.39Buy
F&C Responsible UK Income 2 Acc3.8121.2372.96293.883.50Buy
F&C UK Equity Income 2 Acc13.0620.3148.8558.893.30Buy
FP Miton Income Inst Acc7.0727.3562.91187.284.20Buy
Fidelity Enhanced Income Y Acc1.7814.4548.13500.006.77Buy
Fidelity Enhanced Income W Acc1.9715.0344.65500.006.71Buy
Franklin UK Equity Income W Acc13.2030.3474.88299.344.00Buy
HL Multi Manager Income & Growth A Acc5.8523.7873.282,845.954.09Buy
HSBC Income C Acc6.6112.8846.46200.123.97Buy

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
AXA Framlington Blue Chip Equity Income Z Inc7.8520.9954.7684.494.17Buy
AXA Framlington Monthly Income Z Inc7.9923.2776.08224.594.49Buy
Aberdeen UK Equity Income I Inc11.889.9844.24171.403.80Buy
Allianz UK Equity Income C Inc8.5912.5956.8464.844.15Buy
Artemis Income I Inc8.7621.9270.016,265.594.27Buy
Aviva Inv UK Equity Income 28.5720.8671.13923.164.08Buy
Barclays UK Equity Income R Dis GBP7.1921.3871.12206.104.10Buy
Barclays UK Equity Income S2 R Dis GBP7.0020.9970.51214.004.30Buy
BlackRock UK Income D Inc6.2329.4160.31350.694.07Buy
CF Canlife UK Equity Income C Inc GBP4.1121.7156.54168.16-Buy
CF Miton UK Multi Cap Income B Inst Inc1.6129.34128.36742.924.47Buy
CF Woodford Equity Income C Inc GBP0.23--9,217.733.50Buy
Castlefield B.E.S.T Income Inst Inc0.8617.2350.2019.744.60Buy
Elite Charteris Premium Income Inst Inc17.9011.2722.5511.001.45Buy
F&C Responsible UK Income 2 Inc3.8121.2272.87293.884.10Buy
F&C UK Equity Income 2 Inc12.8818.9845.7958.893.90Buy
FP Miton Income Inst Inc7.0727.3863.07187.284.40Buy
Fidelity Enhanced Income W Inc1.9315.0144.65500.007.38Buy
Fidelity Enhanced Income Y Inc1.8114.3743.98500.007.43Buy
Fidelity Enhanced Income W Monthly Inc1.9415.0044.61500.00-Buy

ETFs

Name6 Months (%)1 Year (%)3 Years (%)5 Years (%)CurrencySector
DB X-Trackers FTSE 100 Short Daily UCITS ETF GBP-11.86-17.63-21.75-41.27GBPEquity - UKBuy
ETFS FTSE 100 Leveraged (Daily 2x) GO UCITS ETF GBP21.0928.8917.4775.11GBPEquity - UKBuy
ETFS FTSE 100 Super Short Strategy (Daily 2x) GO UCITS ETF GBP-22.84-33.57-42.87-71.05GBPEquity - UKBuy
First Trust United Kingdom AlphaDEX UCITS ETF A Acc GBP-1.61-1.2814.73-GBPEquity - UKBuy
Lyxor UCITS ETF FTSE 250 GBP3.824.9723.3696.94GBPEquity - UKBuy
Lyxor UCITS ETF FTSE 100 C GBP11.6017.0917.6350.74GBPEquity - UKBuy
Lyxor UCITS ETF FTSE All Share GBP10.0614.5417.8356.08GBPEquity - UKBuy
Ossiam FTSE 100 Minimum Variance UCITS ETF 1C GBP-3.003.8317.51-GBPEquity - UKBuy
SPDR S&P UK Dividend Aristocrats UCITS ETF1.945.445.48-GBPEquity - UKBuy
Source FTSE 10011.4016.6716.5649.00GBPEquity - UKBuy
Source FTSE 2503.814.9723.3396.66GBPEquity - UKBuy
iShares FTSE 100 UCITS ETF Acc11.5816.9917.4549.99GBPEquity - UKBuy
iShares FTSE 250 UCITS ETF GBP3.764.8622.9695.72GBPEquity - UKBuy
iShares MSCI UK Large Cap UCITS ETF13.7220.2514.3841.43GBPEquity - UKBuy
iShares MSCI UK Small Cap UCITS ETF2.845.2522.69104.81GBPEquity - UKBuy
iShares MSCI UK UCITS ETF11.5416.8215.5447.54GBPEquity - UKBuy

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