Four years ago, we asked how much an individual would need to invest in order to generate an annual income of £10,000 from corporate dividend payments. Rising yields have allowed us to reduce the amount each year and still meet the income objective, but 2018 proved a stiffer test and requires some explaining.
Companies around the world handed out a collective $354.2 billion in the third quarter of 2018, according to Janus Henderson’s Global Dividend Index.
That puts headline growth for global dividend payments at 5.1% compared to the same quarter last year.
Equity investors come in all shapes and sizes. While some invest in equities in the hope that they are buying the next Apple or Amazon, others, typically those who seek some form of income, invest in high-yielding companies as they believe that “a bird in the hand is worth two in the bush”.
As the name suggests, Murray Income trust focuses on dividend paying companies, aiming to provide shareholders with strong, reliable income growth; it prides itself on the fact that it has a 44-year track record of dividend growth. The current yield is around 5.1 per cent. The trust attempts to provide income primarily through investing in UK-listed shares, although it is able to hold up to 20 per cent of its portfolio outside of the UK.
A weak dollar pushed up dividend payments. For some regions, this masked much weaker underlying growth. Tom Bailey reports.
Behind this decline in underlying dividend growth was the growing strength of the pound against the US dollar.
We update our dividend danger zone screen, which highlights high yielding shares that may not keep their income promises.
The AIC's 'Next Generation of Dividend Heroes' list comprises 21 trusts that have increased their dividends each year for 10 to 20 years.
Dividend danger zone: Our new dividend watch series has claimed its first victim. Also, six income shares that look shaky.
Four investment trusts have a record of over 50 consecutive years of dividend growth.