How to enhance investor income if a second covid wave hits
By Cristian Angeloni, 13 Aug 20
In the current circumstances, clients ‘must be feeling like there is nowhere to turn’
The fear of a second wave of infections lingers around the world, as numbers have started to rise again after a significant drop in many countries.
Top of mind is the impact the first wave had, with the damning effects of lockdown measures on global economies.
Many were hoping for higher dividend pay-outs in the second half of 2020; but, in most cases, this seems unlikely as corporate recovery is closely bound to the economy.
But if a second wave does hit, what can investors do to protect and bolster their investment income?
Helen Bradshaw, portfolio manager at Quilter Investors, believes there is still hope.
“The dividend challenge in the UK and Europe has been well documented, and with bond yields falling from already low levels, income investors must be feeling like there is nowhere to turn,” she said.
“However, there are ways investors can seek to add more resilience to their income streams, which may be prudent in the event of economic lockdowns returning.”
Click through the slides above to find out what she recommends.