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UK companies well positioned to weather uncertainty
David Smith, Portfolio Manager of Henderson High Income, discusses the Company’s impressive dividend record, UK equity market valuations and areas where he is finding performance, the comeback of bonds, and the outlook for UK dividends in a recessionary environment.
24 Feb 2023
1 minute listen
1 minute listen
Key takeaways:
- Henderson High Income has increased its dividend for 10 consecutive years, making it one of the AIC’s Next Generation Dividend Heroes. This success is underpinned by good quality companies with strong business models and balance sheets, whilst effectively utilising the investment trust structure.
- Yields on high quality government and investment grade corporate bonds have repriced to levels not seen in decades. This has presented us with an opportunity to increase our bond exposure, notably through high quality US and UK investment grade credit.
- The dividend outlook for the UK remains encouraging. Companies are entering the recession in good financial health and have solid balance sheets which should help them to weather difficult times whilst continuing to pay and grow dividends
Catch up on previous episodes of Trust Radio
Related insights
24 Feb 2023
1 minute listen
1 minute listen
Key takeaways:
- Henderson High Income has increased its dividend for 10 consecutive years, making it one of the AIC’s Next Generation Dividend Heroes. This success is underpinned by good quality companies with strong business models and balance sheets, whilst effectively utilising the investment trust structure.
- Yields on high quality government and investment grade corporate bonds have repriced to levels not seen in decades. This has presented us with an opportunity to increase our bond exposure, notably through high quality US and UK investment grade credit.
- The dividend outlook for the UK remains encouraging. Companies are entering the recession in good financial health and have solid balance sheets which should help them to weather difficult times whilst continuing to pay and grow dividends