2017 a good year for UK equity income- 2018 headline to slow

This note examines the outlook for UK equity income. We see headline growth slowing to just 2.2% in 2018. However the underlying picture is stronger after stripping out the impact of recent sterling strength. The note attached below examines the greatest threat, in our view, to equity markets, normalising bond yields, but conclude the underlying trends are quite different between the US and the UK and Eurozone. The price of money in the UK and the debt equity arbitrage remains largely intact. The note examines profit growth which remains fairly stable, despite a few high profile warnings, and concludes with an analysis of Big Income and perhaps more pertinently sustainable, growing income.Please contact us for a copy of the note.