Three income-producing UK stocks

With UK gilts offering record low yields, investors are right to search for income, says professional stock picker Stuart Widdowson. Here, he tips three high-yielding stocks to buy now.

Each week, a professional investor tells MoneyWeek where he'd put his money now. This week: Stuart Widdowson, investment director, SVG Investment Managers.

With ten-year UK gilt yields at a multi-decade low and offering a negative real (after-inflation) yield, investors are right to look at UK equities in the search for income. During the first half of 2012, UK quoted companies paid out £41.4bn in dividends, a rise of 21% compared with the first half of 2011.

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Stuart Widdowson

Stuart is a professional investor and Managing Partner at Odyssean Capital LLP. Prior to this, Stuart was a fund manager of strategic funds at GVQ Investment Management Limited for just over 10 years and then he spent 6 months as a partner at Harwood Capital to establish a new fund management business. He has been at Odyssean Capital LLP for just over 5 years and he has contributed to MoneyWeek’s share tips.