EDITOR’S VIEW
2 | SHARES | 23 May 2019
This week’s Shares is packed with hints on how to spot sustainable dividends
Helping you find the
best sources of income
I
ncome is highly desired by investors but it not
ĂůǁĂLJƐĞĂƐLJƚŽĮŶĚƐƵƐƚĂŝŶĂďůĞĚŝǀŝĚĞŶĚƐ͘dŚŝƐ
ǁĞĞŬ͛ƐĞĚŝƟŽŶŽĨShares dives into this theme
ĂŶĚůŽŽŬƐĂƚŝŶĐŽŵĞĐŚŽŝĐĞƐĨƌŽŵƚŚĞƉĞƌƐƉĞĐƟǀĞ
ŽĨƚŚƌĞĞĚŝīĞƌĞŶƚƉƌŽĚƵĐƚĐůĂƐƐĞƐ͗ƐŚĂƌĞƐ͕
ĞdžĐŚĂŶŐĞͲƚƌĂĚĞĚĨƵŶĚƐĂŶĚŝŶǀĞƐƚŵĞŶƚƚƌƵƐƚƐ͘
tĞ͛ǀĞĂŶĂůLJƐĞĚƚŚĞƐĞƉƌŽĚƵĐƚƐĨƌŽŵĚŝīĞƌĞŶƚ
ĂŶŐůĞƐƚŽŚĞůƉLJŽƵŐĞƚĂŶĞĚŐĞǁŚĞŶůŽŽŬŝŶŐĨŽƌ
ŝŶĐŽŵĞĐŚŽŝĐĞƐ͘/ŶƚŚŝƐǁĞĞŬ͛ƐĚŝŐŝƚĂůŵĂŐĂnjŝŶĞLJŽƵ
ǁŝůůĮŶĚŝŶĨŽƌŵĂƟŽŶŽŶ͗- ^ƚŽĐŬƐŽīĞƌŝŶŐĂďŽǀĞͲĂǀĞƌĂŐĞLJŝĞůĚƐ
- tĂLJƐƚŽĐŚĞĐŬŝĨĚŝǀŝĚĞŶĚƐĂƌĞƐƵƐƚĂŝŶĂďůĞ
- dŚĞĚŝīĞƌĞŶƚƚLJƉĞƐŽĨĚŝǀŝĚĞŶĚͲƚŚĞŵĞĚ d&Ɛ
- /ŶǀĞƐƚŵĞŶƚƚƌƵƐƚƐǁŝƚŚůŽŶŐƚƌĂĐŬƌĞĐŽƌĚƐ
ŽĨŐƌŽǁŝŶŐĚŝǀŝĚĞŶĚƐĞĂĐŚLJĞĂƌʹĂŶĚ͕
ŝŵƉŽƌƚĂŶƚůLJ͕ƚŚĞŽŶĞƐŐƌŽǁŝŶŐĂŚĞĂĚŽĨ
ŝŶŇĂƟŽŶ
'ůŽďĂůĚŝǀŝĚĞŶĚƐƌŽƐĞďLJϳ͘ΘйŝŶƚŚĞĮƌƐƚƋƵĂƌƚĞƌ
ŽĨϮϬϭεƚŽĂƌĞĐŽƌĚŚŝŐŚŽĨΨϮςϯ͘ϯďŶ͕ĂĐĐŽƌĚŝŶŐƚŽ
ƌĞƐĞĂƌĐŚďLJĂƐƐĞƚŵĂŶĂŐĞƌ:ĂŶƵƐ,ĞŶĚĞƌƐŽŶ͘ŶĚ
ƚŚĞh<ŵĂƌŬĞƚŝƐĐƵƌƌĞŶƚůLJLJŝĞůĚŝŶŐκ͘ϳйǁŚŝĐŚŝƐ
ƐŝŐŶŝĮĐĂŶƚůLJŐƌĞĂƚĞƌƚŚĂŶŝŶƚĞƌĞƐƚĂǀĂŝůĂďůĞŽŶĐĂƐŚ
ƐĂǀŝŶŐƐ͕ĂůďĞŝƚǁŝƚŚŚŝŐŚĞƌƌŝƐŬ͘
^ŽǁŚĂƚ͛ƐƚŚĞĐĂƚĐŚ͍DĂŶLJƐƚŽĐŬƐĂŶĚĨƵŶĚƐ
ŚĂǀĞŐĞŶĞƌŽƵƐLJŝĞůĚƐďĞĐĂƵƐĞƚŚĞǀĂůƵĞŽĨƚŚĞŝƌ
ƐŚĂƌĞƐ;ŽƌƚŚŽƐĞŝŶĂĨƵŶĚ͛ƐƵŶĚĞƌůLJŝŶŐƉŽƌƞŽůŝŽͿ
ŚĂƐĨĂůůĞŶŽŶŵĂƌŬĞƚĐŽŶĐĞƌŶƐĂďŽƵƚƚŚĞŝƌĮŶĂŶĐŝĂů
ŚĞĂůƚŚĂŶĚĞĂƌŶŝŶŐƐŐƌŽǁƚŚ͘ŽŶĐĞƌŶƐĂďŽƵƚƚŚŽƐĞ
ŝƐƐƵĞƐĐĂŶĂĐƚĂƐǁĂƌŶŝŶŐƐƐŝŐŶƐĂŶĚƉŽƚĞŶƟĂůůLJ
ůĞĂĚƚŽĚŝǀŝĚĞŶĚĐƵƚƐĚŽǁŶƚŚĞůŝŶĞ͘/ŶĐŽŵĞͲŚƵŶŐƌLJ
ŝŶǀĞƐƚŽƌƐǁŝůůƚŚĞƌĞĨŽƌĞŶĞĞĚƚŽǁĂĚĞƚŚƌŽƵŐŚĂůŽƚ
ŽĨŝŶĨŽƌŵĂƟŽŶďĞĨŽƌĞŵĂŬŝŶŐŝŶǀĞƐƚŵĞŶƚĚĞĐŝƐŝŽŶƐ͘
dŚĞƌĞĂƌĞƐĞǀĞƌĂůĐŚĞĐŬƐLJŽƵĐĂŶŵĂŬĞƚŽƐĞĞŝĨ
ĐŽŵƉĂŶŝĞƐĐĂŶĂīŽƌĚƚŽƉĂLJĚŝǀŝĚĞŶĚƐŽƌĨƵŶĚƐĂƌĞ
ƉŝĐŬŝŶŐƚŚĞƌŝŐŚƚƚLJƉĞƐŽĨĂƐƐĞƚƐʹĂůůŽĨǁŚŝĐŚĂƌĞ
ĚŝƐĐƵƐƐĞĚŝŶƚŚŝƐǁĞĞŬ͛ƐĞĚŝƟŽŶŽĨShares͘
/ŶĂďƌŽĂĚĞƌĐŽŶƚĞdžƚŝƚŝƐĂůƐŽǁŽƌƚŚĐŽŶƐŝĚĞƌŝŶŐ
ƚŚĞďĞŶĞĮƚƐŽĨŝŶǀĞƐƚŵĞŶƚƚƌƵƐƚƐǁŝƚŚƌĞŐĂƌĚƐƚŽ
ĚŝǀŝĚĞŶĚĐŽŶƐŝƐƚĞŶĐLJ͘/ŶǀĞƐƚŵĞŶƚƚƌƵƐƚƐĂƌĞĂďůĞƚŽ
ƌĞƚĂŝŶƵƉƚŽϭρйŽĨŝŶĐŽŵĞĨƌŽŵƚŚĞŝƌƵŶĚĞƌůLJŝŶŐƉŽƌƞŽůŝŽĂŶĚŬĞĞƉŝƚŝŶĂƌĂŝŶLJĚĂLJƉŽƚƚŽ
ƐƵƉƉůĞŵĞŶƚĨƵƚƵƌĞĚŝǀŝĚĞŶĚƐǁŚĞŶƚŚĞƌĞŝƐĂĨĂůůŝŶ
ŝŶǀĞƐƚŵĞŶƚŝŶĐŽŵĞ͘dŚŝƐŇĞdžŝďŝůŝƚLJŚĂƐŚĞůƉĞĚŵĂŶLJ
ŝŶǀĞƐƚŵĞŶƚƚƌƵƐƚƐŐĂŝŶƚŚĞƌĞƉƵƚĂƟŽŶŽĨďĞŝŶŐĂďůĞ
to maintain or even grow dividends in both good
ĂŶĚďĂĚƟŵĞƐ͘
ŶĂůLJƐŝƐďLJŝŶǀĞƐƚŵĞŶƚďĂŶŬ^ƟĨĞůĮŶĚƐϯϭ
ŝŶǀĞƐƚŵĞŶƚƚƌƵƐƚƐ;ŝŶǀĞƐƟŶŐŝŶĞƋƵŝƟĞƐͿǁŝƚŚĂ
κйLJŝĞůĚŽƌŚŝŐŚĞƌʹŝŶĐůƵĚŝŶŐ,ĞŶĚĞƌƐŽŶ&Ăƌ
ĂƐƚ/ŶĐŽŵĞ;,& >ͿĂƚς͘ϯйĂŶĚ ƵƌŽƉĞĂŶ
ƐƐĞƚƐdƌƵƐƚ; dͿĂƚρ͘Θй͘dŚĞŶƵŵďĞƌŚĂƐ
ŝŶĐƌĞĂƐĞĚĨƌŽŵϮϭƚƌƵƐƚƐůĂƐƚƵŐƵƐƚƉĂƌƟĂůůLJ
ƌĞŇĞĐƟŶŐĨĂůůŝŶŐƐŚĂƌĞƉƌŝĐĞƐďƵƚĂůƐŽĚŝǀŝĚĞŶĚ
ŐƌŽǁƚŚĂŶĚƐŽŵĞƚƌƵƐƚƐƉƵƫŶŐŐƌĞĂƚĞƌĞŵƉŚĂƐŝƐ
ŽŶĚŝǀŝĚĞŶĚƌĞƚƵƌŶƐ͘
'ƌĞĂƚĞƌĨƌĞƋƵĞŶĐLJŽĨĚŝǀŝĚĞŶĚƐŝƐĂŶŽƚŚĞƌ
ŐƌŽǁŝŶŐƚƌĞŶĚ͘DŽƌĞƚŚĂŶŚĂůĨŽĨŝŶĐŽŵĞͲƉĂLJŝŶŐ
ŝŶǀĞƐƚŵĞŶƚƚƌƵƐƚƐŶŽǁƉĂLJƋƵĂƌƚĞƌůLJĚŝǀŝĚĞŶĚƐ͕
ĂĐĐŽƌĚŝŶŐƚŽƚŚĞƐƐŽĐŝĂƟŽŶŽĨ/ŶǀĞƐƚŵĞŶƚ
ŽŵƉĂŶŝĞƐ͘ ǀĞŶƐƚŽĐŬƐĂƌĞŐĞƫŶŐŝŶŽŶƚŚĞ
ŐĂŵĞ͘ĂŶŬŝŶŐŐƌŽƵƉ>ůŽLJĚƐ;>>KzͿ is to switch
ĨƌŽŵŚĂůĨͲLJĞĂƌůLJƚŽƋƵĂƌƚĞƌůLJĚŝǀŝĚĞŶĚƐĨƌŽŵ:ƵŶĞ
ϮϬϮϬŝŶƌĞĐŽŐŶŝƟŽŶƚŚĂƚŝƚƐϮ͘κŵƐŚĂƌĞŚŽůĚĞƌƐŵĂLJ
ĂƉƉƌĞĐŝĂƚĞĂŵŽƌĞƌĞŐƵůĂƌŇŽǁŽĨĚŝǀŝĚĞŶĚŝŶĐŽŵĞ͘
dŚĞŽƉƉŽƌƚƵŶŝƟĞƐĂƌĞŽŵŶŝƉƌĞƐĞŶƚ͖LJŽƵƐŝŵƉůLJ
ŶĞĞĚƚŽƉŝĐŬƚŚĞƌŝŐŚƚŽŶĞƐǁŚŝĐŚŝƐǁŚĞƌĞShares
ǁŝůůĂůǁĂLJƐĚŽŝƚƐďĞƐƚƚŽŚĞůƉ͘DO YOU HAVE ANY INCOME-
RELATED QUESTIONS?Please email [email protected]
with ‘Income Question’ in the subject line. We
will do our best to respond in a future edition of
Shares. Please note, we only provide guidance
and we do not provide financial advice. If you’re
unsure please consult a suitably qualified
financial adviser. We cannot comment on
individual investment portfolios.