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?

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.

Recommended

Don’t be fooled by the illusion of safety in income
Sponsored

Don’t be fooled by the illusion of safety in income

The UK income sector has suffered badly. Max King looks at what the might future look like, and what investors can learn from the experience.
15 Sep 2020
Don’t dump your dividends
Income investing

Don’t dump your dividends

This crisis certainly does not prove that taking regular capital gains is safer than relying on natural income from dividends.
10 Aug 2020
BP halves its dividend
Income investing

BP halves its dividend

BP has announced a record quarterly loss for the three months to the end of June – $17.7bn – and cut its dividend in half.
6 Aug 2020
Don’t despair on dividends – these companies could be set to bring them back
Income investing

Don’t despair on dividends – these companies could be set to bring them back

The value of dividends paid out by UK stocks has plummeted this year as companies “rebase” their payment policies. But things could soon start to look…
6 Aug 2020

Most Popular

Here’s why you really should own at least some bitcoin
Bitcoin

Here’s why you really should own at least some bitcoin

While bitcoin is having a quiet year – at least in relative terms – its potential to become the default cash system for the internet is undiminished, …
16 Sep 2020
Central banks want politicians to take charge – but what will they do?
US Economy

Central banks want politicians to take charge – but what will they do?

The US Federal Reserve has come to the end of the road in terms of what it can do to accelerate any recovery, says John Stepek. It's over to the polit…
17 Sep 2020
IAG's share price is ready for take-off - here's how to play it
Trading

IAG's share price is ready for take-off - here's how to play it

The owner of British Airways has had a turbulent year, but is now worth a punt. Matthew Partridge explains the best way to play it.
8 Sep 2020