Are Equity Income Funds Still Paying an Income?

Many equity income fund have struggled this year, but their yields have spiked as share prices have plunged. What does that mean for income investors? 

James Gard 17 August, 2020 | 9:24AM

Pound notes

The UK equity income sector has been one of the worst performing this year as funds have been hit from all sides: Covid-19 has knocked a hole in income share prices, many blue-chip dividends have been scrapped and UK equities remain out of favour as Brexit negotiations drag on. The Woodford saga has also damaged sentiment towards equity income funds.

With these funds under pressure, how have yields changed in 2020 and over a longer time frame? As companies cut dividends, are these funds keeping up with the wider market?

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About Author

James Gard  is content editor for Morningstar.co.uk

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