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 Acc15.9722.1960.9187.823.58Buy
AXA Framlington Monthly Income Z Acc16.2027.5774.51243.324.12Buy
Aberdeen UK Equity Income I Acc21.4416.2648.53179.473.60Buy
Artemis Income I Acc17.0026.0367.066,469.193.91Buy
Aviva Inv UK Equity Income 2 Acc15.7626.4672.40981.793.67Buy
Barclays UK Equity Income R Acc GBP16.6924.9168.92166.503.90Buy
Barclays UK Equity Income S2 R Acc GBP16.8424.5968.67179.304.30Buy
BlackRock UK Income D Acc17.2033.8463.41378.713.90Buy
CF Canlife UK Equity Income C Acc GBP13.8024.9458.63184.173.53Buy
CF Miton UK Multi Cap Income B Inst Acc7.9027.09115.60811.684.12Buy
CF Woodford Equity Income C Acc GBP12.48--9,873.853.20Buy
F&C Responsible UK Income 2 Acc11.6324.1768.79310.043.50Buy
F&C UK Equity Income 2 Acc20.8626.3249.7761.833.20Buy
FP Miton Income B Acc15.2230.3867.27200.903.90Buy
Fidelity Enhanced Income Y Acc11.0119.1552.17503.006.40Buy
Fidelity Enhanced Income W Acc11.2919.7948.84503.006.35Buy
Franklin UK Equity Income W Acc19.2234.7777.65348.623.83Buy
HC Charteris Premium Income Inst Acc21.6218.2624.0711.501.39Buy
HL Multi Manager Income & Growth A Acc16.3728.9173.843,088.303.96Buy
HSBC Income C Acc15.1515.8647.15206.103.66Buy

OEICs and Unit Trusts

Name1 Year (%)3 Years (%)5 Years (%)Fund Size (M)Yield (%)
AXA Framlington Blue Chip Equity Income Z Inc15.8822.1653.2587.823.94Buy
AXA Framlington Monthly Income Z Inc16.3027.6174.68243.324.28Buy
Aberdeen UK Equity Income I Inc21.4016.3048.49179.473.60Buy
Allianz UK Equity Income C Inc16.0016.0055.4366.764.30Buy
Artemis Income I Inc17.0126.0467.116,469.194.04Buy
Aviva Inv UK Equity Income 215.7626.4772.34981.793.79Buy
Barclays UK Equity Income R Dis GBP16.7024.8769.02166.504.10Buy
Barclays UK Equity Income S2 R Dis GBP16.8424.4268.33179.304.30Buy
BlackRock UK Income D Inc17.0633.7163.27378.713.91Buy
CF Canlife UK Equity Income C Inc GBP13.8025.6659.47184.173.63Buy
CF Miton UK Multi Cap Income B Inst Inc7.9027.09115.45811.684.23Buy
CF Woodford Equity Income C Inc GBP12.42--9,873.853.27Buy
Castlefield B.E.S.T Income Inst Inc5.4115.5247.2024.334.47Buy
F&C Responsible UK Income 2 Inc11.6424.1968.72310.043.90Buy
F&C UK Equity Income 2 Inc20.6825.1246.5861.833.70Buy
FP Miton Income B Inc15.2330.3867.43200.904.00Buy
Fidelity Enhanced Income W Inc11.2419.6848.76503.006.71Buy
Fidelity Enhanced Income Y Inc7.3915.1843.09503.006.77Buy
Fidelity Enhanced Income W Monthly Inc9.0117.3345.79503.00-Buy
Fidelity Moneybuilder Dividend Y Inc15.0127.6869.821,083.494.18Buy

Investment Trusts

Name1 Year (%)3 Years (%)5 Years (%)DiscountNAV
Blackrock Income And Growth Investment Trust Plc Ord 1P15.9032.4685.60-2.38202.05Buy
British & American IT PLC Ord9.6934.4279.7433.6563.60Buy
Chelverton Small Companies Dividend Trust plc Ordinary Shares28.8552.48203.970.30232.56Buy
Chelverton Small Companies Dividend Trust plc Zero Dividend Preference Shares6.8916.52---Buy
Dunedin Income Growth Investment Trust PLC 7/8%Deb Stk 2019-1.22-3.17-2.73--Buy
Dunedin Income Growth Investment Trust PLC Ord 25p24.018.6045.62-10.57285.13Buy
Edinburgh Investment Tst plc11.4632.0174.10-7.06768.22Buy
F&C Capital & Income IT PLC Ord23.4929.7761.33-1.84304.62Buy
Finsbury Growth & Income Trust PLC19.0345.60118.69-0.06693.41Buy
Invesco Income Growth Trust plc12.9418.8663.38-11.34325.96Buy
JP Morgan Elect Managed Income15.1122.7167.058.04102.05Buy
JP Morgan Income & Capital Trust plc Ord25.0615.5591.30-16.00104.46Buy
JP Morgan Income & Capital Trust plc Package Units19.1016.5066.08-5.79389.57Buy
JP Morgan Income & Capital Trust plc ZDP6.0814.6838.893.79180.65Buy
JP Morgan Claverhouse IT plc25.3422.2286.25-7.00720.45Buy
Lowland Investment Company Ord19.889.6388.84-6.871,566.60Buy
Merchants Trust PLC23.1911.2861.47-5.67501.45Buy
Miton The Investment Company Ord-5.82-0.9274.29-6.95351.97Buy
Murray Income Trust PLC Ord 25p22.1713.5844.55-9.55844.65Buy
Perpetual Income and Growth Investment Trust plc4.2911.7966.89-9.62414.92Buy

ETFs

Name6 Months (%)1 Year (%)3 Years (%)5 Years (%)CurrencySector
DB X-Trackers FTSE 100 Short Daily UCITS ETF GBP-8.89-21.34-26.91-41.43GBPEquity - UKBuy
ETFS FTSE 100 Leveraged (Daily 2x) GO UCITS ETF GBP15.9046.4234.7677.46GBPEquity - UKBuy
ETFS FTSE 100 Super Short Strategy (Daily 2x) GO UCITS ETF GBP-16.85-38.49-49.60-70.68GBPEquity - UKBuy
First Trust United Kingdom AlphaDEX UCITS ETF A Acc GBP4.879.2716.84-GBPEquity - UKBuy
Lyxor UCITS ETF FTSE 250 GBP6.7715.1326.0385.19GBPEquity - UKBuy
Lyxor UCITS ETF FTSE 100 C GBP8.5922.4624.3149.58GBPEquity - UKBuy
Lyxor UCITS ETF FTSE All Share GBP9.2722.1025.1555.19GBPEquity - UKBuy
Ossiam FTSE 100 Minimum Variance UCITS ETF 1C GBP-0.858.8023.4862.09GBPEquity - UKBuy
SPDR S&P UK Dividend Aristocrats UCITS ETF1.6912.669.7849.11GBPEquity - UKBuy
Source FTSE 1008.5123.5224.6549.53GBPEquity - UKBuy
Source FTSE 2506.3815.1226.0084.94GBPEquity - UKBuy
iShares FTSE 100 UCITS ETF Acc8.6523.8825.6550.68GBPEquity - UKBuy
iShares FTSE 250 UCITS ETF GBP6.3715.0625.6784.12GBPEquity - UKBuy
iShares MSCI UK Large Cap UCITS ETF9.5626.3223.9643.51GBPEquity - UKBuy
iShares MSCI UK Small Cap UCITS ETF5.4813.7123.9187.93GBPEquity - UKBuy
iShares MSCI UK UCITS ETF8.5323.6223.8748.12GBPEquity - UKBuy

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