Dividends are not unique to this country, but they are a notable feature of the UK stock market that continues to make it attractive to many income-seeking investors.
Sexy? No. Racy? No, no, no – especially when compared against tearaway US tech stocks that can provide patient investors with juicy long-term returns as long as they are prepared to participate in the stock market’s extreme version of snakes and ladders (sharp falls and steep climbs).
But like a cup of hot chocolate late at night, dividends provide comfort – a regular stream of financial return – to counter the volatility of equity investing.
Of course, a lethargic UK economy, and for that matter a benign global economy, are not ideal for generating company dividends.
On the upside, UK Gross Domestic Product figures released a few days ago did confirm 0.6 per cent growth during the second quarter of this year.
Investors must also be aware that Labour could tax more…
