DISCOVER INCOME SOLUTIONS
Equity income stocks could continue be an attractive option for investors this year, discover why.
Why equity income stocks are attractive
Prospects for dividend stocks look attractive, income stocks look relatively cheap compared to the overall market and could offer investors protection from the impact of inflation.
Dividend prospects remain bright
The potential for slower long-term growth and lower capital returns from equity markets could make the income component of overall returns more significant. Newton’s equity income team expects dividend prospects to remain relatively healthy, especially in companies with safe balance sheets and low payout ratios. These are often well-known brand names that have successfully transitioned over time and through multiple economic cycles including periods of inflation.
Dividend Sustainability
Newton believes dividends look more sustainable today than in previous market downturns. This is because during the pandemic companies reduced payout ratios. Distributing a lower percentage of earnings to shareholders means dividend coverage looks high, creating a buffer. The defensive nature of dividend-paying companies can offer inflation protection.
Shift in the macro environment more favourable for income stocks
Income stocks have traditionally performed better relative to the broader equity market during periods of higher inflation. Amid the global recovery from the pandemic, they have demonstrated an ability to decouple from growth stocks, especially when the latter have come under pressure. Dividends matter more in markets with higher inflation, volatility and lower returns.
Value-orientated companies paying good dividend yields act differently to the rest of the market in a more inflationary environment
Income fund range
Brought to you by BNY Investments Newton: a global multi-specialist investment manager with a full spectrum of research-driven solutions.
BNY Mellon Global Income Fund
Fund managers
Rob Hay and Jon Bell
BNY Mellon Global Infrastructure Income Fund
Fund managers
Brock Campbell and Mathieu Poitrat Rachmaninoff
BNY Mellon UK Income Fund
Fund managers
David Cumming and Tim Lucas
BNY Mellon Asian Income Fund
Fund manager
Zoe Kan
BNY Mellon US Equity Income Fund
Fund manager
John Bailer
Why Newton for income solutions
SOLUTION FOCUS
Newton's suite of income strategies seek to achieve income distributions and long-term capital growth. The philosophy behind the solutions is that the compounding of dividends is the dominant source of long-term real returns.
SCALE
Newton manages £30.3 bn in equity income strategies across: Global, US, UK, Asian, Emerging Markets and Infrastructure.1
EXPERTISE RECOGNISED
The investment team has more than 24 years’ investment experience2 and is responsible for managing over 30% of Newton’s assets under management1.
PROCESS
- Strict buy & sell discipline
- Focus on dividend sustainability
- Consideration of themes, fundamentals and Environmental, Social and Governance (ESG)3 issues
- Valuation margin of safety
EXPERIENCE
Newton’s equity income team comprises 13 investment professionals with an average 24 years’ investment experience and 18 years at Newton2.
1. Source: Newton. 31 December 2024. Assets under management (AUM) relates to the combined assets managed by the Newton Investment Management group. From 1 September 2021, Newton group of companies includes Newton Investment Management Limited (NIM) and Newton Investment Management North America LLC (NIMNA). Desk asset totals may include portfolios where team members from different investment desks may also act in a lead or alternate capacity.
2. Years’ investment experience and tenure at firm are team average numbers as at 31 December 2024, with years at firm relating to tenure at Newton and/or Mellon Investment Corporation.
3. Investment decisions are not solely based on environmental, social and governance (ESG) factors and other attributes of an investment may outweigh ESG considerations when making decisions. The way that material ESG factors are assessed may vary depending on the asset class and strategy involved and ESG factors may not be considered for all investments.
MEET THE TEAM
Jon Bell
Through his tenure at Newton, Jon has led both the global equity and multi-asset teams and been responsible for a number of multi-asset and global equity portfolios.
As well as his extensive investment roles at the firm, he has also spent time as a member of the commercial team involved in discussing client portfolios and tailoring strategies to meet client requirements. He sits on Newton’s investment risk oversight groups. Jon joined the Newton equity income team in March 2020, and is responsible for both core and sustainable global equity income strategies.
Jon joined Newton in 1995 and has a degree in natural sciences from Cambridge University.
Zoe Kan
Zoe is a portfolio manager on the Emerging Markets and Asia Equities team. Zoe joined Newton in 2000 as a dedicated Asia Pacific ex-Japan specialist. Having managed unconstrained Asian equity portfolios, she became lead manager on the Asian Equity Income Funds in 2016. She is also a lead manager on the Emerging Income Fund.
Zoe holds a degree in German and Economics, and is a CFA charterholder. Outside of work, Zoe enjoys music and spending time with her young family.
David Cumming
David Cumming joined Newton as head of UK equities in March 2022. David heads up UK equity strategies and is lead portfolio manager of the UK Equity Income strategy.
David has been an active UK equity manager for more than 40 years. He was most recently Chief Investment Officer of Equities at Aviva Investors. Before that, he was Head of Equities at Standard Life Investments, and prior to that was a portfolio manager at Morgan Grenfell, Manufacturers Life and Edinburgh Fund Managers, having begun his career as an investment analyst at Royal London Mutual. He has an MA (Hons) in Economics and Accounting.
John Bailer
John is the lead portfolio manager for dividend-focused Large Cap Value strategies. John is responsible for creating the Income Stock strategy to meet demand from clients seeking attractively valued higher dividend income while not sacrificing dividend growth. He is also the lead portfolio manager for the Equity Income strategy, which emphasises dividend growth stocks, and a senior research analyst on the Dynamic Large Cap Value strategy.
John joined Newton in September 2021, following the integration of Mellon Investments Corporation’s equity and multi-asset capabilities into the Newton Investment Management Group. Before joining Newton, John was a senior portfolio manager and analyst at Mellon Investments Corporation and The Boston Company Asset Management (both BNY group companies). He has managed dividend strategies for the firm since 2005. Previously, John was Chair of Mellon’s Proxy & Governance committee.
John began his investment career in 1992 and has spent his entire career with BNY. John has a BS with distinction in Accounting and Information Management Systems from Babson College and an MS in Finance from Boston College. He received his CFA designation in 1997 and is a member of the CFA Institute and the CFA Society Boston.
Tim Lucas
Tim is the lead portfolio manager for the UK Equity and Sustainable UK Opportunities strategies. Tim joined Newton in 2004, and prior to his current role, was a global research analyst for 16 years, after which he co-managed the UK Equity Income strategy. Prior to joining Newton, Tim worked as an equity analyst at Insight Investment, covering the chemicals and support services sectors.
Tim has a Master of Chemistry degree from the University of Oxford and is a CFA charterholder. Outside of work, Tim enjoys reading about Austrian economics and helps with coaching the children at his village cricket club.
Rob Hay
Robert is the lead manager of the Newton Concentrated Global Equity strategy.
Robert began his career in the private client investment division at Newton in 2000 and has managed a variety of global equity mandates. Robert has an MA from Edinburgh University, a Master’s in European Business from the EAP European School of Management in Paris and is a CFA charterholder.
Outside of work, Robert enjoys spending time outdoors with his young family and is looking forward to travelling with them as they get older.
Brock Campbell
Brock is head of global research at Newton. He provides leadership and managerial oversight of the research team and research process, and works to develop the strategic direction of the research platform.
Brock is also a portfolio manager for the Global Infrastructure Dividend Focus Equity and Global Natural Resources strategies, as well as a senior research analyst responsible for covering infrastructure-related equities, including electric, industrial and communications infrastructure companies, with a focus on the energy transition theme.
Brock joined Newton in September 2021, following the integration of Mellon Investments Corporation’s equity and multi-asset capabilities into the Newton Investment Management Group. Before joining Newton, Brock was the head of equity research, a senior research analyst, research associate and portfolio assistant at Mellon Investments Corporation and The Boston Company Asset Management (both BNY companies).
Brock began his investment career in 2005. He has spent his entire career with BNY.
Brock has a BA in Political Science and Economics from Wheaton College. He received his CFA designation in 2011 and is a member of the CFA Institute.
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The value of investments can fall. Investors may not get back the amount invested. Income from investments may vary and is not guaranteed.
2165652 Exp: 31 December 2025
