Don’t give up on UK dividends
By Kristen McGachey, 8 Jul 16
From mid-caps to life insurance companies, wealth managers and oil giants, there are still plenty of opportunities for income earning post-Brexit, argue UK equity income managers.
Some UK corporates will rise from the ashes – Avigdori
“In the burning ashes of the domestic sector we see today there will be huge opportunities,” said Adam Avigdori, UK Income fund manager at BlackRock.
“Brexit is not the ‘08 recession. This is not a credit problem, it is political uncertainty and consumer confidence issues. As such, it’s a very different background to look for shares and opportunities.”
And there are plenty of opportunities to find among the UK sectors that have suffered the most in the Brexit fallout, like retail, property, travel and leisure, media and support services, he said.
“Ultimately, our focus is on companies which have good balance sheets, good longer term growth prospects and are now discounting significant earnings to clients due to a potential recession. Look to where the gale is blowing the strongest, that’s where you’ll find the most value.
“We are looking to invest further in the domestic space in the coming weeks and months. I can’t help but think as we move through the next quarters, we’ll look back on this opportunity we had to take advantage of tremendous share prices. There will be some shares you buy now that in five years’ time you’ll think, “That was a good trade.”
Tags: Blackrock | Dividend | Investec | Investment Strategy | Miton Group
