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 Newton Investment Management: a global multi-specialist investment manager with a full spectrum of research-driven solutions.
BNY Mellon Global Income Fund
Fund managers
Jon Bell and Rob Hay
BNY Mellon Global Infrastructure Income Fund
Fund managers
Brock Campbell
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 £33.0 bn in equity income and value strategies across: Global, US, UK, Asian, Emerging Markets and Infrastructure.1
EXPERTISE RECOGNISED
The investment team has more than 25 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 14 investment professionals with an average 25 years’ investment experience and 19 years at Newton2.
1. Source: Newton. 30 September 2025. Newton global assets under management (AUM) is the combined total assets under management of Newton Investment Management Limited (‘NIM’), Newton Investment Management North America LLC (‘NIMNA’) and Newton Investment Management Japan Limited (‘NIMJ’).
2. Source: Newton as at 30 September 2025. Includes portfolio managers and other desk members that advise on the management of desk strategies but may not be responsible for day-to-day portfolio management. Team members are not dedicated to single strategies and can therefore have wider strategy responsibilities. Years’ investment experience and tenure at firm are team average numbers as at 30 September 2025, with years at firm relating to tenure at Newton and/or Mellon Investment Corporation. Desk asset totals may include portfolios where team members from different investment desks may also act in a lead or alternate capacity.
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
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.
Jon Bell
Jon Bell manages the Newton Global Equity Income strategy with Robert Hay and is the lead portfolio manager on the BNY Mellon Global Equity Income Fund (Responsible).
Through his tenure at Newton, Jon has led both the global equity and multi-asset strategies 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. Jon joined the Newton equity income strategy in March 2020.
Jon joined Newton in 1995 and has a degree in natural sciences from Cambridge University.
Outside of work Jon spends much of his time as a 'taxi driver' supporting his younger son’s sporting ambitions and sharing in his older son’s passion for horse racing.Jon joined Newton in 1995 and has a degree in natural sciences from Cambridge University.
Rob Hay
Rob Hay manages the Global Equity Income strategy with Jon Bell.
Rob began his career in the private client investment division at Newton in 2000 and has managed a variety of global equity mandates, most recently joining the Global Equity Income strategy in March 2020. Rob has an MA from Edinburgh University and is a CFA1 charterholder.
Outside of work, Rob enjoys spending time outdoors with his young family.
Brock Campbell
Brock is global head of 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.
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 group 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 CFA1 designation in 2011 and is a member of the CFA Institute.
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.
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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.
2897401 Exp: 31 December 2026
