UK investors tend to have a bias to their home market, but overseas exposure is important and this matters for dividends too. Over the past few years the UK market has become more reliant on just a few dividend payers. This means that if any one of these cuts their dividends it can have a substantial impact on the UK’s overall dividend opportunities. And by not investing overseas, you miss out on the many attractive opportunities outside the UK. You can get exposure to overseas income via global equity income funds or, if you have a large portfolio and high enough risk appetite, some regional equity income funds, which could provide stronger returns than broader funds.
Fidelity Global Dividend (GB00B7778087)