- There is more to equity income than UK portfolios
- We assess what other funds and sectors currently offer
Last year’s bumper mining dividends have made waves beyond the domestic equity market. The latest instalment of the Janus Henderson Global Dividend Index notes that payouts from all sectors increased by $212bn (£161bn) last year, with more than a quarter of that rise coming from miners, and BHP (BHP) became the world’s largest dividend payer. To slice the data differently, a quarter of the increase came from just nine companies, eight of which were banks or miners, while in geographical terms a third of the increase came from Australia and the UK.
The other side of the coin is that this year's dividend output will be tempered if miners fail to repeat last year’s success. Given how exposed the domestic market is to this risk in particular, it strengthens the case for dividend seeking investors spreading their exposure beyond UK equity income funds and considering their global peers. While chasing yield alone can be foolhardy, it’s worth assessing the available options.