What should income investors do now?
John Stepek talks to Iain Barnes, head of portfolio management at challenger wealth manager Netwealth, and Matt Conradi, head of client advisory at Netwealth, about how to generate an income from your portfolio without relying on hefty dividend payouts.
Markets have rebounded strongly from their lows in March. However, the damage done to dividends may take longer to recover from.
Amid the coronavirus crisis, entire sectors have scrapped, cut or postponed their payouts to investors, including some of the most reliable payers in the FTSE 100. And it could take some time for dividends to return to their peak levels. Many companies were arguably overstretched, and may now use this opportunity to rebase their payouts.
Meanwhile, interest rates remain at or near all-time lows, meaning that income from cash savings or bond markets is also scarce. So how can income-reliant investors adapt to the post-coronavirus world?
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In this video, MoneyWeek’s executive editor, John Stepek, talks to Iain Barnes, head of portfolio management at challenger wealth manager Netwealth, and Matt Conradi, head of client advisory at Netwealth, about how to generate an income from your portfolio without relying on hefty dividend payouts, and discusses how investors can make their portfolio more resilient while still meeting their income needs.
Find out more about Netwealth by clicking here.
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