How to seize the income opportunity

"These top five were also heavily skewed towards special dividends from both Tesco, the top payer, and BHP. In fact, although Q1 21 dividends declined by about 27per cent on an underlying basis, if you include specials, the headline figure showed about 8 per cent growth.

"Even though the economy is recovering, investors should avoid the temptation to flock to Covid ‘winners’, which are already becoming too expensive. We have started taking profits from some of the higher-growth stocks we own, recycling the proceeds into more moderately priced opportunities.”