FTSE 350 income screen: opportunities for market-beating yield

There’s no doubt that one of the defining features of the UK stock market today when compared to the US is the high dividend yield available from many UK stocks.

In a recent piece, I looked at the potential appeal and recent outperformance of stocks selected from the classic Dividend Dogs high yield screen. Having underperformed during the zero interest rate era, this screen has handily outperformed since rates started to rise.

As a follow-up to this, I decided to create a new simple FTSE 350 income screen to use as a source of ideas for big-cap income stocks. 

This piece will introduce the screen and highlight some of the higher yield opportunities I can see today among larger UK stocks.

In a second piece, I’ll then look at an alternative opportunity set in dividend growth stocks.

Finally, I’m planning to take a look at how to manage the balance between dividend growth and high yield in order to try and maximise returns.

FTSE 350 Income screen

I’ve named this screen the FTSE 350 Income screen, but have also specified a minimum market cap of £1bn. Although this excludes some FTSE 250 stocks, I think it’s...