Trustnet Magazine 95 May 2023 | Page 42

Cumulative payouts on an initial investment of £ 1,000
YOUR PORTFOLIO

Slow and steady

Many investors don ’ t look beyond the UK for income , given it has the highest yield of all major markets . However , research carried out by Brewin Dolphin last year indicated that markets with lower yields tend to compensate for this with higher dividend growth , meaning investors tend to receive similar amounts of income over the long term . For example , the research showed the FTSE All Share had a yield of 4.1 %, much higher than the 2 . 9 % offered by the Asia ex-Japan region . However , the domestic market ’ s dividendgrowth rate over the past 10 years of 2.6 % lagged far behind the 8.1 % of Asia ex-Japan . Brewin Dolphin calculated how much income an investment of £ 1,000 could make for someone over 10 years in a hypothetical scenario where dividend growth and share prices remained the same . It found the UK market would deliver £ 461.03 over this time – only marginally ahead of the £ 421.11 from the Asia ex-Japan market .

Cumulative payouts on an initial investment of £ 1,000

World US UK
Europe ex UK
Japan
Asia ex Japan
Average dividend growth
11.5 %
19.6 %
2.6 %
5.1 %
9.6 %
8.1 %
Current yield
2.3 %
1.8 %
4.1 %
3.4 %
2.7 %
2.9 %
Y1
£ 23.00
£ 18.00
£ 41.00
£ 34.00
£ 27.00
£ 29.00
Y2
£ 48.65
£ 39.53
£ 83.06
£ 69.75
£ 56.59
£ 60.33
Y3
£ 77.27
£ 65.29
£ 126.20
£ 107.33
£ 89.03
£ 94.19
Y4
£ 109.19
£ 96.11
£ 170.46
£ 146.85
£ 124.59
£ 130.77
Y5
£ 144.79
£ 132.98
£ 215.85
£ 188.40
£ 163.56
£ 170.30
Y6
£ 184.49
£ 177.08
£ 262.42
£ 232.08
£ 206.28
£ 213.01
Y7
£ 228.78
£ 229.84
£ 310.19
£ 278.01
£ 253.10
£ 259.16
Y8
£ 278.19
£ 292.96
£ 359.20
£ 326.30
£ 304.43
£ 309.02
Y9
£ 333.29
£ 368.47
£ 409.46
£ 377.07
£ 360.68
£ 362.90
Y10
£ 394.75
£ 458.80
£ 461.03
£ 430.45
£ 422.35
£ 421.11
Source : Brewin Dolphin / Datastream
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