Old Mutual Global Investors income manager Stephen Message is running one of the largest overweights to financials in his sector, in the expectation UK banks are set to return cash to shareholders.
Dividend growth in the UK has been the slowest since 2010, at just 1.4% in 2014 (excluding special dividends) as traditional income paying sectors, including oil and resources, have come under pressure from falling commodity prices. Alongside this, the latest Capita Dividend Monitor reported warned Tesco's decision to cancel its final dividend following an accounting scandal has made a "measurable dent" in the outlook for future dividend growth in the UK. Bucking the slowdown Given this muted outlook for the many of the large-cap dividend payers, Message (pictured) is instead looki...
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