The long-term cost of failing to reinvest dividends

Investors who fail to reinvest their dividends could see their portfolio worth almost half as much over the long-term, according to data from Fidelity.

The analysis showed that investing £100 per month in the FTSE All Share index over the past 30 years and reinvesting all dividends would have produced a portfolio worth £130,140.

A fifth of all dividend paying shares are “traps”

Dividend payouts have recently been reaching reach new record highs. In 2018 global dividends rose to a record $1.37 trillion in headline terms, representing a 9.3% increase, according to the latest Janus Henderson Global Dividend Index.

The world’s top 10 dividend-paying companies

Companies around the world handed out a collective $263.3 billion in the first three months of 2019, marking a new first quarter record, according to Janus Henderson’s Global Dividend Index.

Defying concerns over a slowing global economy, headline growth for global dividend payments stood at 7.8% compared to the same quarter last year.

Investment trust dividend heroes: 20 trusts that have raised payouts for at least two decades

One of main advantages in an investment trust's armoury over open-ended funds is the dividend reserves, which allows companies to set aside 15% of their annual income for tougher times. Unit trusts or Oeics do not have this luxury, which is why investment trusts have more impressive dividend track records, with 10 companies boasting a record of over 40 years of dividend growth.

10 shares to give you a £10,000 annual income in 2019

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.

Five risks to check: investing for dividends

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”. 

Murray Income investment trust: seeking strong and stable dividend payments

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.