Sector report: How times have changed in UK Equity Income

Many moons ago, before most of us were born, equities were correctly perceived as more risky than bonds and, as a result, the yield from dividends was greater than the yield from gilt coupons. Then came the age of inflation through the 70s and gilt yields went well into double figures and the yield gap became the reverse yield gap. With bond yields now seemingly in freefall - the UK 10 year gilt now yields 1.53%* - and with the yield gap firmly reinstated, the go to source for income is now the equity market. For many years the UK equity market was the natural home of income produc...