Fears about Dividends from UK Blue Chips

According to an article in “Investment Week,” UK equity income fund managers have expressed concern about a squeeze on dividends from FTSE 100 companies. Larger companies came back into favour last year on the back of rotation from US equities, attractive valuations and a sell-off in smaller companies and mid-caps. However the sustainability of dividends has been questioned as first …

Investment & Tax Avoidance – George Approves

With tax avoidance being a hot topic in the news and the end of the tax year on the 5th April approaching this is an apposite blog post. The confusion between tax avoidance which is legal and tax evasion which is illegal is not helped by a loose interchange between the two terms, for example the oft banded phrase “aggressive …

Bonds v Equities – Away Win or Score Draw?

During an unprecedented four week holiday in Lanzarote, enjoying its unique volcanic landscape, tapas bars and restaurants, I largely forgot about work. I guess the plan worked. It was somewhat surreal therefore to return to the world of stockmarkets and investing. I had to remind myself of what asset allocation and an ISA are. Did I really give advice on …

Equity Rally, Equity Income & Monsters

It has been an excellent month for global stockmarkets following the last minute compromise deal on the US fiscal cliff. So far my recent decision to allocate my pension fund cash to equities has proved a good one. That said I sense the rally will run into headwinds perhaps in the second quarter, mindful of the old adage “sell in …

Dividend Growth Points to Equity Rally?

In the Business section of  last Monday’s Daily Telegraph (22/10/12) I read a brief but interesting article on dividend payments from British companies. A record £23.2 billion was paid out to investors in the third quarter. Citing Dividend Monitor from Capita the article reported that UK companies are distributing unprecedented amounts of cash. Capita have estimated this year will mark an …

High Yield – The Search for Income

In an economy of balance sheet deleveraging and low growth a key challenge for investors is the search for income. The impact of the financial crisis in 2008 has led to structural changes in the UK economy with very low interest rates having become the norm. By low interest rates we need to distinguish between those that apply to cash and those that …