121. Why revenue reserves are so useful for income investors

Sue Noffke has been running Schroder Income Growth Fund for the past decade. In this episode, she tells us which shares she has owned throughout the whole ten years and which have contributed most to performance. She also discusses the outlook for UK equities and dividend payments, and tells us how she used the revenue reserve in 2020 – but has plenty left should it be needed again.
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Schroder Income Growth is a solid operator which does what it says on the tin – it’s a consistent performer, targeting the shares of UK companies paying dividends that should grow faster than the rate of inflation. The trust invests mainly in the shares of UK larger and medium sized companies and has raised its dividend each year for the past 25 years, making it an ideal option for income seekers.

Read more about Schroder Income Growth

What’s covered in this podcast:

  • What happened to UK dividend payments in 2020 [0:16]
  • How the trust used revenue reserves to maintain its own dividend payments and how much is left should it be required this year [1:50]
  • The manager’s outlook for UK dividends in 2021 [3:44]
  • The manager’s outlook for UK equities in 2021 [5:40]
  • Which companies have been in the portfolio since the manager took over a decade ago – and which have contributed most to performance [6:27]
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