Which Dividend Stocks are Fund Managers Buying?

Using the Morningstar X-Ray tool, we look under the hood of the top UK equity income funds to find out which dividend stocks they are backing

Emma Wall 16 August, 2017 | 2:44PM
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Investing for income? You could do a lot worse than following the lead of the UK’s top fund managers.

March marked the eighth year of record low interest rates. While just a few years earlier you could walk into a high street bank and sign up to a savings account paying in excess of 5% interest, March 2009 marked the end of real inflation-proofed returns from cash. Bond yields dwindled – in some cases even went negative, leaving income investors with equities.

Some sectors cut dividends following the recession; banks were ordered to fix-up their balance sheets and are only just returning re-introducing dividends. Lloyds (LLOY) made headlines recently after promising to up its pay-out. Lloyds reintroduced dividend payments in 2015 after a seven year hiatus.

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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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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Anglo American PLC2,826.00 GBP0.00Rating
ASI UK High Income Equity I Acc290.50 GBP0.24Rating
AstraZeneca PLC8,699.00 GBP0.00Rating
BP PLC361.45 GBP0.00Rating
British American Tobacco PLC2,583.50 GBP0.00Rating
GlaxoSmithKline PLC1,395.60 GBP0.00Rating
HSBC Holdings PLC432.80 GBP0.00Rating
JOHCM UK Equity income B GBP Acc3.99 GBP0.23Rating
LF Equity Income C Sterling Acc3.44 GBP0.00
Lloyds Banking Group PLC49.28 GBP0.00Rating
Threadneedle UK Eq Inc Rtl Inc GBP0.97 GBP-0.49Rating
Threadneedle UK Equity Alpha Inc Rtl Inc0.66 GBP-0.44Rating

About Author

Emma Wall  is former Senior International Editor for Morningstar