Investors looking for yields will have to pick their stocks carefully, according to one expert.
Michael Clark, manager of the Fidelity Income Plus investment fund, explained that as nearly all UK banks have stopped offering cash dividends and construction-related firms have cut them back severely, there is less opportunity to secure a good return.
However, those who opt for investments in the oil and utilities sector could yet prosper, he stated.
Mr Clark said: "BP has just delivered a 25 per cent increase in its quarterly dividend in dollar terms, which translates into over 60 per cent in sterling terms."
Despite the recent fall in oil prices, such firms should continue to be good investments, he added.
Yesterday, Ian Spreadbury, spokesperson for Fidelity International, suggested those of an adventurous nature might want to consider European high-yield bonds as an investment.
According to Mr Spreadbury, these investments are currently offering yields of 22.7 per cent and can help reduce risk in equity portfolios .
Investments must be picked carefully, expert states
Investments must be picked carefully, expert states
Thu, 06 Nov 2008
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