Your portfolio 32 / 33
2 per cent this year. He was previously
bullish on oil & gas dividends, but
Shell’s 60 per cent cut to its payout –
the first reduction since the Second
World War – has left him uncertain
about the income outlook for the
sector: “It is a defining moment. I do
not believe Shell’s decision puts any
pressure on the likes of BP, [but] a
prolonged period of oil-price weakness
would undoubtedly keep the pressure
ramped up on the oil majors.”
Sectors expected to hold up better
include utilities, healthcare and food &
drink. Supermarkets are also enjoying
a welcome boost having been pariahs
of the income world for nearly a
decade. Robin Geffen, manager of the
“It is a defining moment.
I do not believe Shell’s
decision puts any pressure
on the likes of BP, [but] a
prolonged period of oilprice
weakness would
undoubtedly keep the
pressure ramped up”
Liontrust Income fund, recently added
Sainsbury’s to his portfolio.
“In 2019, Sainsbury’s had nearly 16
per cent of its sales online already
REVENUE RESERVES
(EXPRESSED AS THE NUMBER OF MONTHS OF THE LAST ANNUAL DIVIDEND)
18
16
14
12
10
8
6
4
2
0
15.4
14.3
12.1
11.6 11.5 11.1
10.5 9.9 9.8
8.9
8.7
8.0
7.7
6.9 6.8
6.0 5.6
Law Debenture Corporation JPMorgan Claverhouse Schroder Income Growth
Edinburgh IT BMO Capital & Income Dunedin Income Growth
Aberdeen Standard Equity Income Finsbury Growth & Income Murray Income Trust
Invesco Income Growth Temple Bar Diverse Income Trust Lowland
City of London Perpetual Income & Growth Merchants Trust Troy Income & Growth
Source: Investec. As at 30/03/2020
trustnet.com