Such an approach also means greater exposure to geopolitical risk: whether it be Brexit, North Korea, or the fluctuating state of US relations with China.
But even the most domestically minded equity income investors know we live in an interconnected world. For them, the advice remains the same: spread your risk and think long term.
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In the meantime, expect the yield gap between equities and bonds to narrow, though it is unlikely to close altogether.
A reversion to the historical mean still looks a long way off.
Robert Vaudry is managing director of investments at Wesleyan
Top-five UK dividend-paying firms, 2013-17
| Q1 2013 | Q1 2014 | Q1 2015 | Q1 2016 | Q1 2017 | |
| 1 | Royal Dutch Shell | Vodafone Group | Royal Dutch Shell | Royal Dutch Shell | Royal Dutch Shell |
| 2 | Vodafone Group | Royal Dutch Shell | Astrazeneca | Astrazeneca | Astrazeneca |
| 3 | Astrazeneca | Astrazeneca | BP | BP | BP |
| 4 | BP | BP | Vodafone Group | Vodafone Group | Vodafone Group |
| 5 | GlaxoSmithKline | GlaxoSmithKline | GlaxoSmithKline | GlaxoSmithKline | GlaxoSmithKline |
| Subtotal | £7bn | £21.2bn | £6.6bn | £7.5bn | £8.7bn |
| Percentage of total dividends | 54% | 76% | 50% | 53% | 56% |
Source: Capita UK Dividend Monitor: Issue 29, April 2017
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