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]
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