Although UK dividends are forecast another bumper year, there will be stocks that disappoint. UK equity income managers tell Paul Burgin how to avoid them.
Last year was a bumper one for UK dividend hunters. British corporates delivered a record £80.4bn dividend payout, an increase of 16.2% over 2011. Early payment of HSBC's third interim dividend and a total of £6.6bn in special dividends from the likes of Vodafone helped swell the total, according to the Capita Registrars Dividend Monitor report. Such stellar dividends spurred performance in the UK Equity Income sector. Returns averaged 38.9% over the year to 31 March, according to Morningstar. All but one fund - Elite Charteris Premium Income - achieved double-digit total returns. ...
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