Difficult choice ahead for UK equity income investors

Recent history has been challenging for income-seeking investors.

Over the past 18 months or so, shifts in investor preferences have led high-yielding shares to struggle to keep pace with other segments of the equity market, while bond yields have collapsed on a global scale. Since the Global Financial Crisis, investors have been willing to pay handsomely for shares in 'growth' businesses, crushing the dividend yields on these companies. Higher dividend-yielding 'value' shares, on the other hand, have been comparatively unloved.  In this environment, the market has indirectly asked investors to choose between capital growth and income - few share...