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 Acc13.5724.7477.3686.593.96Buy
AXA Framlington Monthly Income Z Acc12.4033.4485.88232.924.33Buy
Aberdeen UK Equity Income I Acc18.3412.6757.47177.483.80Buy
Artemis Income I Acc14.6724.3580.456,486.993.63Buy
Aviva Inv UK Equity Income 2 Acc14.8425.3484.20954.843.80Buy
Barclays UK Equity Income R Acc GBP10.4021.0876.72207.203.90Buy
Barclays UK Equity Income S2 R Acc GBP10.4320.9376.74217.404.30Buy
BlackRock UK Income D Acc15.0835.0169.10355.843.97Buy
CF Canlife UK Equity Income C Acc GBP13.8426.1871.21162.99-Buy
CF Miton UK Multi Cap Income B Inst Acc5.2839.48-722.544.03Buy
CF Woodford Equity Income C Acc GBP13.76--9,667.243.30Buy
Elite Charteris Premium Income Inst Acc22.316.6432.9111.001.39Buy
F&C Responsible UK Income 2 Acc10.6028.0483.33303.003.40Buy
F&C UK Equity Income 2 Acc20.8422.7360.2661.763.20Buy
FP Miton Income Inst Acc15.7633.0478.32194.444.00Buy
Fidelity Enhanced Income Y Acc12.7921.6163.59503.006.40Buy
Fidelity Enhanced Income W Acc13.0122.3259.81503.006.34Buy
Franklin UK Equity Income W Acc22.4137.1690.92267.193.77Buy
HL Multi Manager Income & Growth A Acc10.6826.7480.772,902.553.71Buy
HSBC Income C Acc13.2616.6457.24207.033.90Buy

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
AXA Framlington Blue Chip Equity Income Z Inc13.6724.8768.9086.594.13Buy
AXA Framlington Monthly Income Z Inc12.4133.5286.11232.924.51Buy
Aberdeen UK Equity Income I Inc18.3212.6457.41177.483.80Buy
Allianz UK Equity Income C Inc10.6611.6963.0166.534.22Buy
Artemis Income I Inc14.6724.3780.666,486.993.75Buy
Aviva Inv UK Equity Income 214.8425.3784.08954.843.91Buy
Barclays UK Equity Income R Dis GBP10.3921.0176.83207.204.10Buy
Barclays UK Equity Income S2 R Dis GBP10.4420.7376.39217.404.30Buy
BlackRock UK Income D Inc15.1535.1069.21355.843.99Buy
CF Canlife UK Equity Income C Inc GBP13.8526.9372.10162.99-Buy
CF Miton UK Multi Cap Income B Inst Inc5.2739.49-722.544.14Buy
CF Woodford Equity Income C Inc GBP13.72--9,667.243.38Buy
Castlefield B.E.S.T Income Inst Inc5.5519.2458.2818.81-Buy
Elite Charteris Premium Income Inst Inc22.266.6233.6111.001.45Buy
F&C Responsible UK Income 2 Inc10.5827.9783.15303.004.00Buy
F&C UK Equity Income 2 Inc20.5821.2856.9661.763.70Buy
FP Miton Income Inst Inc15.7833.0678.50194.444.10Buy
Fidelity Enhanced Income W Inc12.9822.3159.59503.006.90Buy
Fidelity Enhanced Income Y Inc12.7821.5858.98503.006.94Buy
Fidelity Moneybuilder Dividend Y Inc15.5730.8580.081,131.104.18Buy

ETFs

Name6 Months (%)1 Year (%)3 Years (%)5 Years (%)CurrencySector
DB X-Trackers FTSE 100 Short Daily UCITS ETF GBP-14.06-20.04-21.27-44.25GBPEquity - UKBuy
ETFS FTSE 100 Leveraged (Daily 2x) GO UCITS ETF GBP27.4836.4616.9489.81GBPEquity - UKBuy
ETFS FTSE 100 Super Short Strategy (Daily 2x) GO UCITS ETF GBP-26.70-37.55-42.55-74.40GBPEquity - UKBuy
First Trust United Kingdom AlphaDEX UCITS ETF3.864.6019.30-GBPEquity - UKBuy
Lyxor UCITS ETF FTSE 250 GBP6.889.7826.5799.02GBPEquity - UKBuy
Lyxor UCITS ETF FTSE 100 C GBP13.8719.8716.5856.73GBPEquity - UKBuy
Lyxor UCITS ETF FTSE All Share GBP12.4717.6217.4961.62GBPEquity - UKBuy
Ossiam FTSE 100 Minimum Variance UCITS ETF 1C GBP9.0819.2529.32-GBPEquity - UKBuy
SPDR S&P UK Dividend Aristocrats UCITS ETF10.2111.9710.83-GBPEquity - UKBuy
Source FTSE 10014.3520.1316.2355.94GBPEquity - UKBuy
Source FTSE 2507.8610.7927.70100.56GBPEquity - UKBuy
iShares FTSE 100 UCITS ETF Acc14.5420.4917.1156.87GBPEquity - UKBuy
iShares FTSE 250 UCITS ETF GBP7.8310.7027.3299.61GBPEquity - UKBuy
iShares MSCI UK Large Cap UCITS ETF16.3022.5513.1847.86GBPEquity - UKBuy
iShares MSCI UK Small Cap UCITS ETF7.5711.4128.69109.67GBPEquity - UKBuy
iShares MSCI UK UCITS ETF14.5220.1415.0954.29GBPEquity - UKBuy

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