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Income stocks have become my comfort blanket in recent years. And right now, they’re warming up nicely.
While the US tech sector has done most of the running over the past decade, traditional FTSE 100 income stocks are finding a new audience. Rising interest rates reminded investors that dividends matter. And with markets more jittery than ever, I’ve rediscovered the joys of solid shareholder payouts.
Here are three big takeaways from my own investing experience.
1. Double-digit yields aren’t always dangerous
I’ve loaded up on UK financials such as Phoenix Group Holdings, Legal & General Group and M&G. Each has offered yields around the 9% to 10% mark, which would usually be a red flag. At that level, shareholder payouts can quickly become unsustainable.
So far, it hasn’t happened. All three have sound balance sheets and produce reliable cashflow. They may not…
