Equities have traditionally been seen as a ‘growth’ investment, but investors have increasingly become dependent on dividends and franking credits for their income. A dividend bonanza in early 2019 has rewarded many income investors, however some have hurt badly with unexpected dividend cuts from former blue chips. So how to manage an income-focussed equity portfolio?
Dr Don Hamson from Plato Investment Management manages investors’ funds explicitly for equity income, and shares his thoughts on:
- Why he often avoids the highest yielding stocks
- How to avoid dividend traps, where both income and share prices fall
- Where to find a 20% yield and a rising share price, and
- Whether dividends are likely to trend lower over the coming year.