The Big Theme 

Go east for income

Go east for income

Widespread dividend cuts and interest rates at record lows are not making life easy for income investors. And things don't look set to improve any time soon, with Link Asset Services predicting that UK dividends could fall between 27 and 51 per cent this year, and asset manager Janus Henderson predicting that up to 50 per cent of European dividends are at risk. And while US companies are more likely to reduce share buybacks than dividend payments, as we pointed out in the Big Theme of 10 January, the average US equity income fund yield was only 2.3 per cent compared with 4.5 per cent for UK funds.

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