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A fresh start for UK stocks?
Laura Foll, Co-Portfolio Manager of Lowland Investment Company, talks about the performance of the UK market, how companies are dealing with rising costs, and how the Trust performs in this type of environment. Laura also provides her outlook for dividends in the coming months.
17 May 2022
Key takeaways:
- The UK stock market has performed well to begin the year, mainly benefitting from its sector make-up. Natural resource companies have benefitted from higher commodity prices, whilst financials have benefitted from the prospect of higher interest rates.
- Companies are likely to experience margin pressure in 2022 due to rising input costs, such as higher labour, energy, and raw material costs. However, companies with strong pricing power have been able to pass on these costs to consumers.
- Dividends have recovered strongly so far this year, with special dividend payouts from mining companies like Anglo American and Rio Tinto. Share buy-backs have also increased in the UK market.
Stock article
UK stocks
17 May 2022
Key takeaways:
- The UK stock market has performed well to begin the year, mainly benefitting from its sector make-up. Natural resource companies have benefitted from higher commodity prices, whilst financials have benefitted from the prospect of higher interest rates.
- Companies are likely to experience margin pressure in 2022 due to rising input costs, such as higher labour, energy, and raw material costs. However, companies with strong pricing power have been able to pass on these costs to consumers.
- Dividends have recovered strongly so far this year, with special dividend payouts from mining companies like Anglo American and Rio Tinto. Share buy-backs have also increased in the UK market.