DIY Investor Magazine
/
Jan 2017
21
2016 has been a good year for dividends and the
majority of companies continue to grow their dividends
in double digit percentages. The coming years remain
attractive for equity investors. Big overseas earners will
flourish as a result of the fall in the pound.
Another big fallout from Brexit and the fall in the pound
is the attraction of UK companies to overseas predators.
We have already seen a number of takeover approaches
from both the US and Europe, the biggest of which is
the bid by 21st Century Fox for Sky.
Brexit remains an overhang for some sectors such as
the house builders, but in our view UK housing market
fundamentals remain strong with a continued supply/
demand imbalance and the availability of attractive
mortgage rates.
The house builders as a whole provide very attractive
yields and they have used housing market strength to
rebuild their balance sheets since the financial crisis.
