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Another avenue for better returns may lie within sector-specific funds. Industries like healthcare and energy often boast higher dividends. For instance, the Invesco Morningstar US Energy Infrastructure MLP offers an attractive yield of 8.38%, suggesting a possible annual income of £838 from a £10,000 investment, despite its volatile nature.
Real Estate Investment Trusts (REITs) also present compelling options due to their requirement to distribute at least 90% of taxable income to shareholders. The iShares MSCI Target UK Real Estate ETF yields 7.84%, which could mean an annual income of £784 from a similar investment.