UK Equity Income – 3 share ideas for dividends
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A key attraction to the UK market is dividends. Here are three UK share ideas with strong dividend-paying potential.
This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.
Published on 18 January 2024
It was correct at the time of publishing. Our views and any references to tax, investment and pension rules may have changed since then.
It’s no secret that the UK economy has struggled over the past year or two. Inflation’s been running well above the Bank of England’s 2% target, leading to an aggressive set of interest rate hikes.
These rate hikes act to dampen economic growth, and have contributed to a dip in UK company valuations. Because of this, we think now might be a good time for investors to pay more attention to companies closer to home.
The FTSE 100 index is currently trading at 10.1 times earnings, which is good value compared to historic levels and other developed markets. For context, the S&P 500 index, which is representative of the US stock market, trades at around 24.2 times earnings.
Another key attraction to the UK market is dividend-paying potential. It’s filled with mature companies boasting strong dividend cover and the potential for income to grow over the
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