Jupiter Asset Management’s Adrian Gosden and Chris Morrison explain why they see a supportive backdrop continuing for equity income investors in the UK.
We think the new year will look familiar to UK equity income investors. Many of the market catalysts that resonated in 2024 remain in place, with companies undervalued versus history and versus other markets.
We would expect to see dividend growth from the companies we invest in, and this should allow our strategy to do what it aims to — provide income and achieve capital appreciation.
We see the supportive backdrop for UK equities continuing. For example, we think the pace of corporate activity in the form of mergers and acquisitions can maintain a healthy pace. This reflects the low valuations of good companies as well as well as a stable economy and government. We would expect that overseas companies, trade buyers and private equity firms will want to do more deals…
