Broker snap: Look to equities for income, Citi says

23rd Oct 2009 13:11

US bank Citigroup has been casting its eye on income shares and reckons the sectors to focus on are telecoms and insurance, which look cheap when compared to banks and utilities.The US bank says UK equities still look good value on a dividend basis, and highlighted telecoms giant Vodafone and mining leviathan BHP Billiton, both of which appear to offer secure dividend income.Blue-chip companies with solid dividend cover and yields of more than 3% include drugs firm GlaxoSmithkline, household goods maker Reckitt Benckiser, fashion chain Next, accountancy software company Sage and engineer IMI, Citi notes.