Neptune's Geffen on the outlook for equity income

Searching for yield has become increasingly difficult for the UK equity income manager over the last decade. Indeed, 2009 was no easier with total dividend payments down by £10bn and 2010 will be a year where yield is again hard to find. In an environment of near-zero interest rates and corporate bond yields coming down, income-generating equities look particularly attractive as they offer the twin benefit of capital growth alongside dividend payments. We believe dividend income will represent a significant proportion of the returns in the UK market in 2010. A higher demand for income, c...