The hunt for income

Jason Pidcock and Caroline Keen of the Newton Asia-Pacific equities team say the trend for dividend-paying Asian companies is continuing to evolve.

Grappling with the woes of inflation, low bond yields and minimal returns on cash, investors on the hunt for a real return are increasingly turning to equity income funds. We argue Asia is one of the most attractive regions for achieving a good balance between income and capital growth. In our experience, companies in Asia paying dividends offer benefits over and above the actual income that is paid out. Not only are managements encouraged to be disciplined in their allocation of capital, but dividends can also be used to highlight value. This is especially important today in an envir...