Quilter has raised the forecasted annual income range for its Monthly Income Portfolios for the sixth consecutive year, reflecting the continued resilience of portfolio income and a positive outlook for dividend growth over the year ahead.
Managed by Helen Bradshaw and CJ Cowan, for the 2026/27 financial year, the Quilter Investors Monthly Income Portfolio is forecast to pay between 3.55p and 3.95p per share, up from the previous forecast range of 3.50p to 3.90p. The Quilter Investors Monthly Income and Growth Portfolio is forecast to pay between 3.70p and 4.10p per share, an increase from 3.60p to 4.00p*.
Based on these forecasts, this would equate to estimated yields of between 3.56% to 3.96% for the Monthly Income Portfolio, and 3.21% to 3.56% for the Monthly Income and Growth Portfolio.**
The increase follows another strong year of income delivery. The Monthly Income Portfolio delivered 3.88p per share during the 2025/26 financial year, towards the top end of the forecast, while the Monthly Income and Growth Portfolio delivered 4.11p per share, exceeding the upper end of its forecast range.
Quilter Monthly Income Portfolios income estimates:
| Portfolio | Estimated income per share 2026/27 | Estimated income per share 2025/26 | Actual income per share 2025/26 |
| Quilter Monthly Income Portfolio | 3.55p – 3.95p | 3.50p – 3.90p | 3.88p |
| Quilter Monthly Income and Growth Portfolio | 3.70p – 4.10p | 3.60p – 4.00p | 4.11p |
Source: Quilter. All income figures quoted in pence per share, based on the U1 (GBP) Income share class of the Quilters Investors Monthly Income and the Quilters Investors Monthly Income and Growth portfolios.
During 2025 and into 2026, dividend growth from equity holdings continued to provide strong support to portfolio income. Developed markets led the way, with the UK, Europe and Japan delivering particularly healthy dividend growth, while financial companies were a key contributor globally.
Fixed income continued to provide stability for the portfolios, with some notable bright spots including local currency emerging market debt delivering higher than expected income. Select credit and alternative fixed income strategies also performed well, and the portfolios benefitted once again from special dividends from BioPharma Credit.
Looking ahead, the team remains broadly positive on the outlook for dividends. Active equity managers are forecasting dividend growth in the mid-to-high single digits, with Japan remaining particularly attractive as corporate reforms encourage companies to return more cash to shareholders.
While strong share price gains over the past year have compressed forward looking dividend yields across many equity markets, a number of companies have increasingly favoured cash dividends over share buybacks, providing further support for income-focused investors.
The portfolios distribute a monthly income in a smoothed manner, ensuring clients receive consistent payments throughout the year. To generate the forecasts, Bradshaw and Cowan combine several inputs and use an in-house forecasting tool to estimate in granular detail the amount of income that may be expected from the portfolios throughout the financial year.
“We are delighted to be increasing the forecast income range for both portfolios for the sixth consecutive year following another strong year of income delivery. Providing investors with a reliable and growing income stream remains at the heart of our portfolios, and it is particularly pleasing that we have once again been able to raise our expectations for the year ahead.
“As more people adapt to a changing tax landscape and think carefully about how best to pass wealth on to future generations, we continue to see strong demand for solutions that can provide a smoothed monthly income. The ability to make gifts from surplus income has become an increasingly important consideration for many investors.
“The past year has once again highlighted the benefits of diversification. Despite significant geopolitical uncertainty and ongoing market volatility, income from developed market equities has remained resilient, while fixed income has continued to provide stability. Our broad mix of income sources helps us navigate different market environments and gives us greater confidence in the sustainability of the income we deliver.
“The slightly larger increase to the forecast range for the Monthly Income and Growth Portfolio reflects its greater exposure to equities and its ability to capture more of the dividend growth we expect to see over the coming year. While strong share price gains have compressed yields in some markets and bond distributions may be slightly lower than last year, we continue to see attractive opportunities to support portfolio income and deliver consistent monthly payments for investors.”
CJ Cowan, portfolio manager at Quilter
*This forecast is an estimate and relates to the U1 (GBP) Income share class for both portfolios.
**Based on the unit prices at the beginning of the financial year.
