Luckraft: Less dividend risk in small and mid caps

ON UK INCOME

AXA Framlington's George Luckraft says dividends in many small and mid-cap names are more reliable than FTSE 100 counterparts.

There are a number of attractive yield opportunities down the market-cap scale. With every equity income manager herding into the highest yielding FTSE 100 stocks, the yield plays further down the scale help diversify concentration risk, as well as generating differentiated performance. Many income managers remain wary of UK small and mid-cap companies as yield plays, concerned about the reliability of dividend payments, particularly given the state of the UK economy. However stock selection remains key. Small and mid cap companies that occupy niche or leading market positions, bal...