Dividend payout cuts thrust IMA UK Equity Income sector into the spotlight

Dividend cuts across the board over the past year are having an impact on UK Equity Income sector's returns despite stock market rally

The IMA UK Equity Income sector has been thrust into the spotlight this year as many companies that were traditional sources of solid dividends, such as banks, were forced to cut payouts. Despite the recent rally in the stock market, the IMA UK Equity Income sector is still down -13.6% over the three years to 2 November, according to Morningstar. However, while the yield from the market has fallen significantly, one of their unique features of the FTSE is the global reach; with two thirds of the earnings of UK-listed companies coming from abroad. Ian Lance and Nick Purves’ £1.38bn ...