COVER STORY Dividends
Where everything is bigger The elephant in the room is the US . Despite the examples mentioned previously , it is clear investors in the FTSE haven ’ t enjoyed the full benefits of a growth-oriented market when compared with the S & P 500 . However , Ashby notes that while there is a bigger pool of technology and high-growth investors in the US , there is also a bigger pool of value investors . Richard de Lisle , manager of the
VT De Lisle America fund , points out that the yields on comparable industries in the US are not a million miles away from those in the UK . For example , in oil & gas he says Exxon is yielding 4.5 % and Chevron 4.2 %. “ You can always get yield in US energy : just go to pipelines ,” he says . “ For instance , the $ 34bn stock MPLX still yields 8.6 % and that ’ s after a triple share price gain off its low . The current philosophy is , ‘ pay it out , Performance of £ 1,000 invested in indices over 15yrs
S & P 500 (£ 5,678.2 ) FTSE 100 (£ 2,122.6 )
£ 6,000
£ 5,000
£ 4,000
£ 3,000
£ 2,000
£ 1,000
0 |
|
|
|
|
|
|
|
Feb07 |
Feb09 |
Feb11 |
Feb13 |
Feb15 |
Feb17 |
Feb19 |
Feb21 |
Source : FE Analytics
/ 12 / trustnet . com