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Roula Khalaf, Editor of the FT, selects her favourite stories in this weekly newsletter.
One of the problems with being a fund manager is taxi drivers giving you fund tips and friends asking for them.
I have been asked a couple of times recently for shares that will deliver a reliable 5 per cent annual return. I know why. The Bank of England base rate has started edging down; the Fed is now following suit. Rates on cash accounts, currently delivering a “risk-free” real return, are going in the same direction. Is it time to buy some stalwart UK dividend-paying stocks to lock in higher returns — albeit for more risk?
There is logic to the idea. And I can think of some companies I like that currently pay more than 5 per cent, though I would be a poor friend if I did not also give some caveats.
It is easy nowadays to screen the FTSE 100 for high-yielding stocks. Be cautious about the dividend…
