Larger dividend yields from smaller companies

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Mid-cap companies are offering marginally better dividend yields than large caps as companies in the...

Mid-cap companies are offering marginally better dividend yields than large caps as companies in the FTSE 100 move to lower dividends to maintain profits. UK companies have been shying away from dividends, with share buy backs being the alternative, more tax efficient option, says Stephen Payne, UK fund manager at Framlington. In September the FTSE 100 was yielding around 2.06% net, while mid caps were offering an average of 2.28%, he says, noting that "as the company size decreases, generally the dividend yield is increasing." Market dividend growth forecast is normally around 10%, thi...

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