Tomorrow’s Income Aristocrats

In this episode of "Short Briefings on Long Term Thinking," Malcolm Borthwick interviews James Dow about the impact of the coronavirus pandemic on income investing and dividend payments. James Dow distinguishes between "good" and "bad" dividend investing, suggesting a permanent reset for companies that over-distribute dividends. He highlights sectors like high street retail and oil and gas as examples of potentially unsustainable dividends, while favoring capital-light businesses such as securities exchanges and future-oriented sectors like healthcare, automation, and digital technologies. The conversation also covers the benefits of global diversification in income portfolios, the potential of the Chinese market for future dividend opportunities, and the resilience of investment trusts in maintaining income payments through revenue reserves.