Income monopoly - Bruce Stout

[monabri]

Article by Bruce Stout (manager of Murray International Investment Trust)

https://www.trustnet.com/news/13362801/ ... ruce-stout

(Not read it as I'm off out but might be of interest).

[Dod101]

Article by Bruce Stout (manager of Murray International Investment Trust)

https://www.trustnet.com/news/13362801/ ... ruce-stout

(Not read it as I'm off out but might be of interest).

Thanks. I like Bruce Stout and so like to know his views. Not a great deal in the article that most of us would not know but we have seen a number of UK companies 'resetting' their dividends because payouts got just too generous. I am thinking of HSBC, Shell and Imperial Brands for three. No doubt there are others .Companies do not like cutting their dividends but being too generous catches up with them in the end.

Dod

[moorfield]

Sloppy journalism.

Both of the companies quoted, GSK and BATS, turned over the majority of their income outside of the UK, according to the notes in their (2021) financial statements. As is the case for many others from FTSE100.

I suspect what the article meant to say was "UK domiciled or listed companies". But what it doesn't say, and should have done, is that UK retail investors like you and I suffer additional income eroding costs holding high yield companies from elsewhere - fx and withholding tax typically.

Which is why we tend to stick to "the UK".