A change in the US dividend culture has created a burgeoning US equity income sector. The yield opportunities are clear, but is a pure play strategy the best way to access the story? Maria Merricks reports.
Despite being the largest market in the world, the US has long been dismissed by income seekers, placing it somewhat behind the curve compared to the likes of the UK’s equity income culture. A number of factors have warranted it being overlooked. The dotcom bubble of the 1990s shifted the focus from income as investors scrambled for the big growth stories, according to Henry Sanders, manager of the Aviva Investors US Equity Income fund. Add to the mix a hefty income tax on dividends of around 35% and the concept was rendered pretty inefficient. However, 2003 saw a change in the tax...
To continue reading this article...
Join Investment Week for free
Signup and gain exclusive members-only insights - all free of charge!
- Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
- Get ahead of regulatory and technological changes affecting fund management
- Important and breaking news stories selected by the editors delivered straight to your inbox each day
- Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
- Be the first to hear about our extensive events schedule and awards programmes
