The Contrarian Investor: Searching for income further afield

Searching for income further afield

The recent Budget's pension reforms will really make a big difference to investors over the next few decades.

My hunch is, over the next five to ten years, we will see a gradual recalibration of older investors’ portfolios towards riskier assets as pensioners desperately seek out an income from new sources. Although the biggest beneficiaries in the short term might be corporate bond funds, equity income will, I believe, be the hands-down winner over the long term. Steady dividend income with some inflation protection, plus the possibility of capital growth – what is not to like for the riskier part of a portfolio of assets? The good news is this renewed interest in dividend-oriented strategie...