/ HENDERSON /
It’s also
important to
own companies
whose business
models aren’t
necessarily
dependent on
the economic
cycle and hence
their income is
subject to less
volatility
dominated by news of dividend cuts
from some of the biggest names
here. The likes of Rio Tinto, BHP
Billiton, Rolls Royce and Barclays
have all announced dividend cuts
this year. This can create a large
problem for income fund managers,
so the question remains: how do
you find income in the current
environment?
Firstly, it’s important to maintain
a diverse portfolio. One major
criticism of the UK market is that it
is overly concentrated in terms of
income: the top 10 dividend paying
stocks represent over 50 per cent of
the total market income. Owning a
broad range of companies across a
number of different sectors such as
pharmaceuticals, telecoms, media
and utilities means the Trust isn’t
overly reliant on any one sector or
company for its ]