The 3.5% yield on the UK stock market is among the most generous in the world. By comparison, the...
The 3.5% yield on the UK stock market is among the most generous in the world. By comparison, the US equity market yields only 1.8%, with some 30% of S&P Composite Index constituents not even paying dividends. US firms paying dividends have outperformed the market over the past two years. Only smaller developed markets, such as Australia and Belgium, or emerging markets, offer higher levels of income. This feature has been well recognised by UK investors, as the deep-rooted popularity of equity income funds attests. Contrarians might suggest that, following a prolonged period of ...
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