Chris Bailey is European strategist at Raymond James
Income in Europe
Chris Bailey from Raymond James says:
“Today the fear of making equity income the major source of income for portfolios is far too cautious.
“Uncertain economic times inevitably induce volatility in equity markets, but the compensation in terms of equity yield is generally very attractive, with groupings of large capitalisation euro area or pan-European equities offering yields of 4 per cent plus.
“Clearly, tough economic times will make some individual company yields unsustainable but, via a diversification strategy, much of this specific risk can be mitigated.
“The other aspect is – unlike fixed principal bond investments – equity markets also offer medium-term capital growth prospects too. Particularly if, as appears likely, further stimulus from the euro area authorities is forthcoming.”
