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As a veteran value/income/dividend investor, I favour shares that offer high dividend yields. Currently, there’s no shortage of such candidates in the FTSE 100 and FTSE 250.
FTSE falling
However, the UK stock market hasn’t had a great start to 2023. Since 29 December, the Footsie is down 3.5%, while the FTSE 250 has lost 4.2%.
Then again, when share prices fall, this can boost dividend yields, making cash returns from shares more attractive. But all this hinges on whether companies continue to make these cash payouts in future.
For example, take the stock of FTSE 250 firm Close Brothers Group (LSE: CBG), whose share price has taken a beating this month. Close is a mid-sized player in UK merchant banking, business and consumer lending, wealth management and securities trading.
At their 2023 high, Close shares hit 1,139p on 6 January 2023. On Friday (19 January) they closed at 597.5p, valuing the group…
