Top Fund Managers Turn to Small Caps for Income

At a time when FTSE 100 firms have been slashing pay-outs, many smaller companies have been producing double digit dividend growth

Holly Black 14 August, 2017 | 10:40AM

WhSmith is one of the stocks tipped by fund managers for income

Smaller company shares have historically been the choice of investors looking for fast growth. A flourishing fledging firm can see its share price rise at a much faster rate than a larger counterpart, while large-cap companies are traditionally relied upon for regular income.

But fund managers are starting to look further down the market cap spectrum to find dividend payers. At a time when FTSE 100 firms have been slashing pay-outs, many smaller companies have been producing double digit dividend growth.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Card Factory PLC50.00 GBP0.00
Greene King PLC  
Kames UK Equity Income GBP B Acc230.34 GBP-0.26
Lowland Ord973.00 GBP-0.10
Moss Bros Group PLC  
Photo-Me International PLC55.60 GBP0.00
Redde PLC  
Schroder UK Smaller Companies Z Acc133.60 GBP-0.15
WH Smith PLC1,017.00 GBP0.00

About Author

Holly Black  is Senior Editor, Morningstar.co.uk

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