It may not be conventional wisdom when it comes to UK equity income investing, but blending stock selection and looking beyond the traditional big dividend payers can provide more sustainable and balanced income streams. An income investor with consistent long-term investment objectives should not necessarily think: “I must seek the highest yielders today, but question who will be the dividend payers and growers of the future.”
An income portfolio should hold a selection of stocks that together offer a combination of yield, capital protection and the prospect of growth, instead of just income alone.
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Jeremy Lang is a partner at Ardevora
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