The UK has been the place to be for income investors recently : £ 81.5bn is expected to be paid in ordinary dividends this year , plus £ 1.6bn in specials , which will put 2022 close to 2018 ’ s record of £ 85.2bn . Yet just 10 stocks are expected to account for nearly half of this figure , concentrated in a handful of sectors . It therefore makes sense to look beyond the UK if you rely on income from your investments and want to dampen concentration risk . One fund that can be used for this purpose is
JPM Global Equity Income , which is the best performer in the IA Global Equity Income sector over three , five and 10 years . “ The fund has all the risks that come with investing in equities , but tends to be more defensive on a relative basis ,” said Sam Witherow , who co-manages the fund . “ Over the past five years , we have given clients 100 % of the market upside and only 80 % of the downside . “ This has been possible because we invest in mature , higher-quality businesses with good cashflow generation and more consistent pricing power .” The manager considers ESG factors in his investment analysis and avoids morally questionable industries , such as tobacco , gambling , controversial weapons and thermal coal . While the fund has suffered from its low exposure to oil & gas this year , it has continued to outperform . This can be partly attributed to its overweight position in US equities , at 64 % of the portfolio compared with
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