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.
Brexit will separate the wheat from the chaff – Hutchins
Blake Hutchins, manager of the Investec UK Equity Income Fund, admitted he has not engaged in a great deal of post-Brexit trading thanks to his defensive multinational portfolio, of which around 75% is FTSE 100 stocks.
But he is convinced there are good companies to be found that have been marked down heavily in the aftermath of the vote.
“At the margins, we’re probably looking for a few bargains among the mid-cap companies that have been indiscriminately hit after Brexit like United Business Media and Close Brothers,” he said.
“I imagine there will be even more of an observable discrepancy between quality companies and lesser quality organizations that are domestically weighted. I wouldn’t go for banks, which I still think are poor quality. However, you have financial companies like Schroders, Hargreaves Lansdown and Close Brothers who were hit indiscriminately and are worth more than they are currently valued at.
“It’s all about sifting through those businesses that suffered because of sterling exposure that are in a decent enough shape to grow their cash flow,” said Hutchins.
Tags: Blackrock | Dividend | Investec | Investment Strategy | Miton Group
