Why equity income battle will hot up in 2012

EQUITY INCOME

The equity income space has always been fiercely competitive but is set to become a key battleground for fund groups in 2012.

A new IMA sector and some compelling forecasts for dividend strength over the coming year have created even more buzz around this area of the market. According to Capita Registrars, the prospective gross yield for 2012 is 4.4%, with the FTSE 100 yielding 4.5% and the FTSE 250 on 3.7%. Bond yields fell further still in Q4, taking equity yields to an unprecedented spread over bonds of 240bps. Its latest Dividend Monitor, which analyses data provided by Exchange Data International, found payouts from UK-listed companies hit a new record of £67.8bn in 2011.  For 2012, Capita forecasts a f...