EUROPEAN equity income investing has hit a ‘sweet spot' that could see returns outstrip the UK income sector for years to come, according to Argonaut.
Oliver Russ, manager of the £221m Resolution Asset European Income fund, believes Europe now offers the best opportunities for yield-seeking investors. He highlighted that firms were increasingly keen to return cash to shareholders in the form of increased normal and special dividends. He points that dividend growth in Europe is faster than in the UK, where stocks currently yield only marginally more than their European counterparts. And with around 350 stocks in Europe forecast to yield at least 3.5pc next year – compared to 120 such stocks in the UK – there is far more choice a...
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