Quarterly Income Monitor

This is clearly an interesting time given recent gyrations in the bond yield curve however we observe that the yield gap relative to bonds remains extreme. This is at a time where the prospects for equity income growth, if anything, are improving aided by Sterling depreciation,a modest upswing in consensus forecasts and a revival from very low levels of commodity stocks earnings expectations. We examine the prospects for Big Income, which we view as sluggish and prefer sustainable income growth screening for stocks yielding over 3% in 2017 (there are 166 of them in the FTSE 350) with broadly stable EPS momentum and anticipated dividend growth of 5% or more. 47 stocks make the cut. Please contact us for a copy