The one attribute that income investors arguably prize over any other is consistency – particularly those who use their investments to fund or supplement their lifestyles in retirement. For this growing band of investors taking advantage of the pension freedoms, a dividend cut is likely to hit the income they pay themselves in retirement.
The vast majority of over 50s want to maintain their current lifestyle in retirement but are unwilling to invest appropriately to achieve this goal.
There are two new entrants to our dividend danger zone screen, which picks out shares that may disappoint investors on the dividend front.
The UK stock market continues to be given the cold shoulder by both retail and institutional investors, with Brexit blues largely to blame.
Our July 2017 cover story highlighted 10 shares to buy and hold forever – here’s how they have fared over the past year.
Spotting a business that will stand the test of time is easier said than done, particularly in an age when technological change is disrupting various industries.
The Association of Accounting Technicians (AAT) has called for shares issued by companies listed on the Alternative Investment Market (Aim) to lose their inheritance tax (IHT) exemption, arguing that it is ‘an anomaly that should be ended’.
Four in 10 wealth and asset management firms have publicly drawn up Brexit contingency plans. The analysis, carried out by consultancy EY, found that 22 out of 57 firms (39 per cent) are considering or have confirmed they are moving some of their operations and staff out of the UK.
For the last couple of years, the general consensus among professional investors has been that there are two areas of the world that value investors should be targeting: Europe and Japan.
Cheaper valuations compared to other markets have whetted the appetite, while the economic picture has also been seen to be favourable.
Over three decades ago an academic paper revealed a simple yet highly effective way to improve investors’ odds of stock market success: avoid the big names and instead identify tomorrow’s giants. The study, carried out by Rolf Banz in 1981 at the University of Chicago, first documented what is known today as the ‘small firm effect’ or ‘small-cap premium’, whereby over the long term smaller-sized shares deliver much higher returns than their larger rivals.
For the past couple of years, the global economy has been described as ‘just right’ – the so-called Goldilocks scenario. But, as parents and grandparents know all too well, Goldilocks is eventually confronted with a family of bears, and the same fate is likely to befall stock markets following their nine-year bull run.