If we can't rely on the banks and oil majors for dividend growth, what then? Ketan Patel, socially responsible investing (SRI) analyst at Ecclesiastical, argues the pharmaceutical sector is worth another look.
Patel says that while the sector has come under pressure in the last few years, the emergence of a medicine-buying middle class in developing economies spells good news for Western drug companies.
Not only are pharmaceuticals trading at attractive prices, Patel argues the sector makes sense for ethically-minded investors, singling out GlaxoSmithKline for its work in providing developing nations with access to medicine.
Ecclesiastical's Robin Hepworth, AAA-rated by Citywire, runs the Ecclesiastical Higher Income and Ecclesiastical Amity International funds. Both feature in Citywire Selection, the guide to our best investment ideas.
Filmed by Ecclesiastical.