Newton's Pidcock looks to commodities for Asian Income

Newton's Asian Income manager Jason Pidcock is favouring commodity-related stocks, a sector normally avoided by income seekers in the UK.

The manager of the £907m fund said resources such as oil, coal and gas offer an increasingly appealing risk/reward balance, while Asia Pacific companies are now making up the largest slice of high-yield stocks worldwide. Among all companies in Asia, 26% had a yield above 3% last year, compared to just 8% in the UK, and this is set to rise.  “There are more high yielding companies in Asia now than in any other region in the world, and the dividend growth trend will only benefit this figure as we expect dividends to rise by at least 10% this year,” said Pidcock. He added with the div...