Martin Cholwill, manager of the Royal London UK Equity Income fund, reveals why a strategy focused on companies able to deliver sustainable dividend growth is key.
The merits of equity income investing have long been recognised within the UK marketplace, something which is self-evident from the size of many of the leading funds in the IMA UK Equity Income sector. What is less well recognised, however, is the attraction of investing in companies with a sustainable and progressive dividend growth policy. The appeal of growing dividends is something that, I believe, has increased markedly in the aftermath of the credit crunch. We are now in a world of anaemic economic growth, a situation that is likely to persist for the foreseeable future. In t...
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