5 Ethical Stocks for Income

Want an attractive dividend and a clean conscience? Here are five ethical stocks for an income portfolio

Emma Wall 15 October, 2013 | 5:01PM
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Read more on ethical and sustainable investing in Morningstar's Ethical Investing Week 2013.

The ability to pay out a dividend to shareholders is a good indicator of whether a company is doing well financially. Quite simply, if a company does not have cash to spare, it can't afford to reward shareholders. 

Nick Anderson, manager of the Henderson Global Care Growth fund, said that sustainable themes that ethical fund managers follow ensure the stocks they pick are good long term bets. 

"Ethical screening includes corporate governance and shareholder relations criteria, meaning that companies' interests are aligned with stakeholders. This holistic process ensures the best possible total return to the investor," he said.

While some stocks within the ethical sector are only suitable for the growth investor - companies involved in renewable energy for example can be volatile - that is not the case across the board. These ethical stocks all pay an attractive dividend, and have been tipped by investment professionals to provide you with a steady income for years to come.

1. United Utilities (UU.)

Yield: 4.69%

EXCLUSIVE RESEARCH TO PREMIUM USERS CLICK HERE

2. Informa (INF)

Yield: 3.39%

EXCLUSIVE RESEARCH TO PREMIUM USERS CLICK HERE

3. DS Smith (SMDS)

Yield: 1.36%

EXCLUSIVE RESEARCH TO PREMIUM USERS CLICK HERE

4. Republic Services (RSG)

Yield: 2.9%

EXCLUSIVE RESEARCH TO PREMIUM USERS CLICK HERE

5. Pennon Group (PNN)

Yield: 3.83%

EXCLUSIVE RESEARCH TO PREMIUM USERS CLICK HERE

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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About Author

Emma Wall  is former Senior International Editor for Morningstar