COVER STORY
Dividends
“ There are some good examples of unique , highly profitable and cashgenerative businesses which justifiably attract higher multiples ” Graham Ashby
Fund manager at Schroders
companies per se , can be great investments .” He adds that growth opportunities can be found in the unlikeliest of places . Even on the beleaguered high street , investors can buy into the growth of Next , which derives most of its earnings from its fast-growing online division .
Schroders fund manager Graham Ashby notes that although the IA UK Equity Income sector remains popular among investors , at £ 45bn it is dwarfed by the £ 174bn IA UK
All Companies sector , in which the majority of funds invest primarily for capital growth . “ It ’ s fair to say that many UK-listed companies trade on discounts to overseas peers , but there are some good examples of unique , highly profitable and cash-generative businesses which justifiably attract higher multiples ,” he says , pointing to Croda International , Spirax Sarco and Halma , which are all in the FTSE 100 .
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