Neptune Investment Management CEO Robin Geffen expects UK dividend growth to rise sharply this year as favourable conditions for companies allow them to boost payouts.
Geffen says Neptune has forecast dividend growth in the UK of 15%, with potential for further upside. He says: "Cash levels on many corporate balance sheets are high relative to history, and we expect payout rates to go up as corporate earnings rise." Geffen, manager of the £1.04bn Neptune Income fund, is also expecting to see a structural shift in the market as investors move into equities to avoid rising inflation and interest rates. He warns investors in longer-dated bonds in particular could be caught out by rising inflation while in comparison the environment for equities is m...
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