Geffen expects continued dividend growth for Neptune Income vehicle

Neptune Income fund manager Robin Geffen has been adding to unloved utilities and healthcare stocks in recent months as he expects continued dividend growth in the £939m portfolio.

Geffen says the fund has focused on high quality and high yielding stocks with substantial overseas earnings throughout 2010. The manager says the yield generation on the Income portfolio increased by over 13% in 2009, with a large number of stocks held managing to increase dividends. He expects this trend to continue through this year. "The payment and growth of dividends is critical and our strategy remains to protect and grow the fund's capital while continuing to ensure a stream of income," Geffen says. "While the market's focus on cyclical mid-cap stocks in the first quarter mean...