101. US company dividends: more increases than cuts

While dividend cuts in the UK have been numerous, leaving income investors in uncertain territory, the US has fared a lot better. Fiona Harris, investment specialist for the JPM US Equity Income fund, tells us that just 13% of S&P 500 companies have cut or suspended their payments while more than 40% have raised or started them. She also discusses a number of holdings in the fund, including Morgan Stanley and NextEra, and talks about the US election.
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JPM US Equity Income fund targets an above-average income by investing in a diverse range of established, dividend-paying companies. Despite the naturally lower yielding nature of the US market, it has a long history of dividend payments, and the managers filter down the whole US market into a portfolio of 85-110 quality firms, buying them when valuations are attractive and holding them for the long term.

Read more about JPM US Equity Income

 

What’s covered in this podcast:

  • How many US companies have cut dividends [0:28]
  • How many US companies have increased dividends [1:02]
  • How the fund’s companies have fared [3:11]
  • Examples of companies the managers have bought recently [4:27]
  • Why the managers like NextEra – the US utility company [7:07]
  • The US election and what the potential impact of higher corporate taxes could mean for the stock market [9:07]
This article is provided for information only. The views of the author and any people quoted are their own and do not constitute financial advice. The content is not intended to be a personal recommendation to buy or sell any fund or trust, or to adopt a particular investment strategy. However, the knowledge that professional analysts have analysed a fund or trust in depth before assigning them a rating can be a valuable additional filter for anyone looking to make their own decisions. Past performance is not a reliable guide to future returns. Remember, all investments can fall in value as well as rise, so you could make a loss. Before you make any investment decision, make sure you’re comfortable and fully understand the risks.Further information can be found on Elite Rated funds by simply clicking on the name highlighted in the article.

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