The changing face of equity income investing
Posted On June 15, 2022
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Equity income investors have more options today than ever before, but the major concern is around debt levels right now, according to the guests on the latest edition of the FTAdviser podcast.
This edition of the FTAdviser podcast is sponsored by Artemis and is part of our Despatches series.
Jake Moeller, senior investment consultant at Square Mile said: “Active investors can take heart from rising yields, there are more companies paying a yield above 2 per cent in the MSCI World index today than there has been for many years, and there is less reliance on the US market to find those dividends.
“Even emerging market stocks are now offering some opportunities in that area. It is no longer the case that one is restricted to owning tobacco and pharmaceutical stocks in search of income.”
Jacob De Tusch-Lec, global equity income fund manager at Artemis, said: “In a changing market environment, what used to be risky, may not be risky now, and vice versa. Companies used to refinance and find that due to l;ower interest rates, their finance costs had fallen.
“That is not happening now. That means the cost to companies of leverage will be higher, and that leaves less for shareholders, so that is something we are focused on.”
To listen to the full podcast click play on the player above. FTAdviser’s podcasts are also available on Apple Podcasts, Spotify, Stitcher and Acast.