Henderson's Curtis: Why income investors have never had it so good

Henderson's Job Curtis, manager of the £838m City of London investment trust, said UK equity income investors are experiencing the best conditions since the 1950s.

The manager argues cash-rich corporates will be able to withstand a year of missed earnings expectations and continue to either maintain or increase dividend payouts. “Shares are not as cheap as they were this time last year, with the market trading above 6,000, but you have got to look back to the 1950s to find the last time equity yields were in such a strong state, particularly against the backdrop of abnormally low UK interest rates,” he said. “I expect dividend growth will come in at 6%-7% this year, despite the fact analyst earnings expectations are on the high side.” The man...