Hunting for income on the stock market has not been an easy sport since the pandemic took hold. Dividends were cut across the board, and while the market offers up plenty of high yields, they are often because the stock has fallen out of favour with other investors.

Ian Mortimer, manager of the £2.3bn Guinness Global Equity Income fund, has warned hunting for the highest yields is one of the least-effective ways for investors to buy a reliable income. The fund yields 2.5pc against the UK market average of 3.5pc.

He said: “The best way is to look for quality stocks. That is how you can find ones ultimately best-placed to pay a dividend through thick and thin, and keep growing it with inflation.”  

Mr Mortimer tells Telegraph Money how he identifies shares with the best dividends and why “green” credentials can act as an obstacle for income hunters.

Who is the fund for? 

Investors who want the best dividend-paying companies from around the globe. Many of our peers look for the highest dividend yields but we do not think that is the most sensible approach. 

We want companies that are of an exceptionally high quality, that are good at investing in themselves, rewarding shareholders and have strong balance sheets. These are the businesses that are best-placed to pay a dividend in all market environments. We have a concentrated strategy of 35 stocks, with around 3pc of the fund in each company.

How has the fund’s income fared? 

In 2020, 28 of our companies grew their dividend. Six were flat and only one cut. Overall, our investors received the same income as 2019, which was good going considering the market we operated in.

Last year, 31 grew their payouts, three were flat and one reduced. Since the start of the pandemic, not one of the companies we own cancelled its dividend.