The strength of corporate balance sheets and margins, however, is giving boards the confidence to increase dividends in spite of this volatile backdrop, providing a source of real income growth in an otherwise scarce yield environment.

Ben Lofthouse is fund manager of the Henderson International Income investment trust

IN NUMBERS

Stockmarket dividend yield for 2011 calendar year, according to Citigroup

• UK – 4.2%

• US – 2.2%

• Europe excluding UK – 4%

• Japan – 2.7%

• Pacific excluding Japan – 4.4%

Source: Citigroup