Why investors may need to look beyond dividend mainstays

Conflicting forces are buffeting UK equity income investors. Tailwinds include the record low base rate, which is boosting the appeal of dividend income, according to Aviva Investors' James Balfour.

Moreover, Brexit weighed on the share price of many companies with strong balance sheets and bright earnings prospects, allowing investors to enter at discounted prices with attractive yield and potential capital rebound.  There is even the possibility of higher and special dividend payments given that some companies have excess capital to distribute. BoE holds rates at 0.25% but further cut possible later this year Companies with large export earnings have also benefitted from Brexit's impact on sterling. Global UK-listed companies with US dollar earnings became 'safe' havens. ...