Go East for income

Sarah Moore explains why investors should look to Asia in their search for income and growth.

Many high-yielding UK stocks have recently had to cut their "too good to be true" dividends most notably mining companies hit by falling commodity prices. But if you're looking for income, there is still plenty of opportunity beyond the UK's blue-chip companies, says Maike Currie in the Financial Times you just have to look overseas. "You'll find Asia leads the pack when it comes to offering the income investor's Holy Grail: income and growth."

There are 165 companies in the Asia-Pacific region (excluding Japan) that offer both a forecast dividend yield of above 4% and forecast earnings-per-share growth of about 10%, according to Liontrust Asset Managers. This compares to 33 companies in the UK, 62 in continental Europe and two in Japan only America beats Asia, with 174.

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Sarah is MoneyWeek's investment editor. She graduated from the University of Southampton with a BA in English and History, before going on to complete a graduate diploma in law at the College of Law in Guildford. She joined MoneyWeek in 2014 and writes on funds, personal finance, pensions and property.