Join our community of smart investors

Ride the dividend recovery with City of London Investment Trust

A number of City of London Investment Trust’s holdings have resumed dividend payouts
Ride the dividend recovery with City of London Investment Trust
  • The case for City of London Investment Trust, a defensive UK equity income fund
  • The appeal and risks of UK equity income
IC TIP: Buy at 329.2p
Tip style
Income
Risk rating
High
Timescale
Long Term
Bull points

High yield 

Strong record of dividend increases

Defensive positioning

Overseas equity holdings

Bear points

Recent under performance

Share price volatility

In a year marked by savage dividend cuts, UK equity income investors might finally have some cause for optimism. Link Asset Services’ latest UK Dividend Monitor report says that “some signs of light” are finally appearing for income hunters. This includes companies resuming their dividends, fewer dividend cuts being made, and greater clarity over the state of companies’ operations. But despite Link forecasting a fairly attractive average yield of between 3.3 and 3.6 per cent for the UK market in the next 12 months, challenges remain. So while UK equities could still form part of an income portfolio, it may be best to get exposure to them via a fund with a resilient and selective process.

To continue reading...
Join our Community of Smart Investors
  • Independent full-length company analysis
  • Actionable investment ideas and recommendations
  • Expert investment tools and data
  • Stock screens from Algy Hall
Have an account? Sign in