Income portfolio candidates

Candidates for the income portfolio

These are the current candidates for the income portfolio using the filters that I detailed in my post on 27 April here.  This will produce companies that have a record of increasing their dividends, are expected to yield at least 3% with a safe level of earnings cover and are attractively valued.

Click on table to enlarge

I have ranked the top three in each criteria green, orange & yellow for 1st, 2nd or 3rd.  Much research has been conducted on the importance of dividends to total shareholder returns(TSR).

Although over various 10 year periods, the dividend contribution will vary, the average for the past 80 years is around 55% of TSR. During poor performing market periods, as you would expect, dividends can contribute up to 80% of TSR.

I have commented on AMEC & Petrofac in previous posts, but will comment on some of the other candidates in future.  A quick word about the very high dividend cover for IRV, this is due to some exceptional gains on disposal of interests, if we exclude those items the dividend cover is 2.26.