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Finding hidden income from funds

Do unconventional dividend plays work?
January 31, 2024
  • Dividends can come from some unusual sources, including private equity trusts
  • Which names deserve credit?

The uncertainties of recent years have at least made life much easier for income investors. They need not cast far and wide for juicy yields any more: equity income funds can pay out nicely, FTSE 100 stocks such as Legal & General (LGEN) offer forward yields of more than 7 per cent, regions such as Asia show plenty of promise and even government bonds are paying out a decent rate for now.

Share price weakness has also left many of the classic alternative income plays, such as infrastructure investment trusts, on high yields and wide discounts. As we wrote this week in our newly launched, free-to-read investment trust newsletter, plenty of trusts across different asset classes paid out handsomely in 2023 and continue to come with a good level of yield – if you're not already a subscriber to our newsletters, click here.

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