Those with investments in the stock market might be reassured by new research which shows that although prices might fall, dividend payments are much more reliable.
A study by Fidelity International reveals that dividend payments in the UK investment market have shown an annual increase in all but five years since 1965.
The rate of growth in dividend payments also means they offer an option for people looking for investments which will beat inflation .
Sam Morse, manager of the Fidelity MoneyBuilder Growth Fund, said: "I regard dividends as key to UK equity investment and I've always viewed dividend growth as a leading rather than lagging indicator of stock market out-performance."
Firms that increase their dividends each year tend to make for good investments, he added.
Yesterday, Richard Moore, manager of the Santander UK Growth Fund, warned that inflation now poses the biggest threat to investments, due to the affect it is likely to have on UK companies.
Dividends offer stable investments, expert claims
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Dividends offer stable investments, expert claims
Wed, 23 Jul 2008
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