Income Tool

For those investing for income our unique Income Tool helps you to find the top income funds based on factors which are important to you.  These factors include payout growth, payout consistency and total return.  You can produce an income fund shortlist by filling in the questionnaire below.

Key Considerations

  1. Payout growth is a key consideration.  If you are an income investor, it is growth in the income from year to year that is vital.  As such we believe consistency of growth in the payout, and the payout growth over 10 years, should be priorities for most people.  We explain why in more detail here.
  2. Some funds will have less than a 10 year track record.  There might be a good fund which has been launched more recently, so the table also allows you to prioritise the 3 year payout growth.
  3. Importance of current yield.  On the one hand this tells you how much income you will receive now, as a percentage of the sum you invest.  But do note that, as a rule of thumb, the higher the starting yield, the less the scope for that income to grow in years ahead.
  4. Funds invested outside the UK.  This tool only analyses funds invested into the UK stock market.  There are a growing number of outstanding funds which invest globally. Our previous research is here.
  5. Our model Income Portfolio.  We have already done a lot of research into income portfolios. Have a look here but note this particular portfolio also includes global funds.

Complete the short questionnaire below and click 'Go'.

Level of importance
Not at all To some extent Important Priority
Payout Growth Consistencythe number of years in the last 10 which the fund grew its income payout
Current Yieldthe fundís current yield
10 yr payout growththe % growth in the fundís payout over 10 years
10 yr total returnthe total investment return over the last 10 years assuming all income was reinvested
3 yr payout growththe % growth in the fundís payout over 3 years
3 yr total returnthe total investment return over the last 3 years assuming all income was reinvested



Alternatively click here to use our advanced income tool.

 

N.B. Dynamic Fund Selection is a form of momentum investing and is different to investing for income, which is what concerns us here.  Investors interested in capital growth and momentum investing can see how our Dynamic Fund Ratings work by clicking HERE.

 

Notes on Income Tool data

Payout Growth Consistency and Payout Growth (%) are updated annually.  Total Return and Yield figures are updated monthly.

Funds selected from the UK Equity Income and UK All Companies sectors.  UK All Companies funds are funds with an income focus and a historic yield >3.5% as of Jan 2017.

Funds with less than 7 years of data or less than £50m in size are excluded.

Payout growth calculated using Dividend Pay Dates on a calendar year basis

Data provided by FE Analytics and FundExpert.co.uk. Care has been taken to ensure that the information is correct but we neither warrant, represent nor guarantees the contents of the information, nor do we accept any responsibility for errors, inaccuracies, omissions or any inconsistencies herein.  Where possible, we have contacted fund managers to check data that the data we receive is accurate.