By Lee Wild | Thu, 22nd September 2016
Running an income fund has been fairly straightforward for the past few years. Drug giants like GlaxoSmithKline (GSK) and AstraZeneca (AZN) have kept up shareholder returns and the telecoms sector has offered rich pickings. So have BP (BP.) and Royal Dutch Shell (RDSB). However, income plays are becoming more expensive, and now we’re hearing that Shell’s dividend record is in serious danger.
Shell has not cut the dividend since the Second World War; it’s a fact we love to repeat whenever the conversation turns to the oil sector and dividends. And, despite a 55% rally since late January, the shares still offers a prospective dividend yield of 7.3%.
Clearly, Ben van Beurden has no intention of going down in history as the CEO who ended the amazing run.
Unfortunately, Stephen Bailey and Jamie Clark, who run the Liontrust Macro Equity Income fund, think it’s inevitable.
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