A fresh start for UK stocks?
Laura Foll, Co-Portfolio Manager of Lowland Investment Company, talks about the performance of the UK market, how companies are dealing with rising costs, and how the Trust performs in this type of environment. Laura also provides her outlook for dividends in the coming months.
Key takeaways:
- The UK stock market has performed well to begin the year, mainly benefitting from its sector make-up. Natural resource companies have benefitted from higher commodity prices, whilst financials have benefitted from the prospect of higher interest rates.
- Companies are likely to experience margin pressure in 2022 due to rising input costs, such as higher labour, energy, and raw material costs. However, companies with strong pricing power have been able to pass on these costs to consumers.
- Dividends have recovered strongly so far this year, with special dividend payouts from mining companies like Anglo American and Rio Tinto. Share buy-backs have also increased in the UK market.
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These are the views of the author at the time of publication and may differ from the views of other individuals/teams at Janus Henderson Investors. References made to individual securities do not constitute a recommendation to buy, sell or hold any security, investment strategy or market sector, and should not be assumed to be profitable. Janus Henderson Investors, its affiliated advisor, or its employees, may have a position in the securities mentioned.
Past performance does not predict future returns. The value of an investment and the income from it can fall as well as rise and you may not get back the amount originally invested.
The information in this article does not qualify as an investment recommendation.
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