In an inflationary environment history’s lesson suggests there’s an investment strategy that shines more than other approaches.
Underlying dividends are tipped to climb by 7.5 per cent in 2017, with the weak pound putting a positive gloss on the true picture.
A global surge in dividend payouts, up 2.2 per cent on a headline basis over the first quarter of 2016, highlights the challenging situation in the UK.
Income-seeking investors may be surprised to learn that the highest-yielding stocks can fail to produce the best returns.
UK dividends rose by nearly 20 per cent to hit a record £67.8 billion in 2011.
The 19.4 per cent year-on-year rise marks the first annual increase since 2008, according to Capita Registrars.
A third of investment trusts and other closed-end investment companies have a higher yield than the FTSE 100 average yield, according to the Association of Investment Companies (AIC).
Dividend growth is back on the agenda, with Schroders predicting shareholder payouts will rise over the next three years.
The firm argues dividends will be a useful way to supplement investors’ income during the austerity cuts of 2011.