Geffen says dividend growth could exceed 15% in 2011

Geffen, the manager of the £1bn Neptune Income fund, says as the business community begins to feel more confident about economic growth prospects, company dividend growth could accelerate. "The gap between UK gilt yields and the yield on the FTSE All Share has closed. The yield on a 10-year gilt rose from its low of 2.83% to 3.24%, bringing it in line with the FTSE All Share's estimated yield of 3.2%," Geffen says. "However, this does not make equity income look any less attractive, with the next catalyst due to come from increasing expectations for dividend growth. "This recession...