Cautious optimism in the UK equity market, October 2023

Rathbone Income, co-managers Alan Dobbie and Carl Stick discuss the state of the UK stock market and the outlook for dividends. They acknowledge the challenges the UK market has faced in recent years but share why they express optimism about the current situation. We discuss that UK companies have been relatively prudent in setting their dividend policies in recent years due to various economic challenges and they anticipate a mid-single-digit increase in dividends, which can help offset inflationary pressures. Alan also provide insights into their meetings with top holdings like BAE Systems and Legal & General, highlighting how they assess these companies in their investment decisions.