The investment trusts yielding more than 4%

Income seekers have richer pickings compared with three months ago, with there now being 31 investment trusts yielding more than 4%, up from 28 previously.

Funds and Investment Trusts May 16, 2019 by Tom Bailey

A total of 31 investment trusts are currently yielding more than 4%, according to investment bank Stifel’s latest report.

The number is an increase from the 28 trusts on the list three months ago and 21 trusts on year ago. This increase in yields reflects both higher payouts from certain trusts as well as falling share prices.

Topping the list was Henderson Far East Income, a position it held in the previous Stifel report. The trust’s yield increased by a small amount, from 6.1% to 6.3% over that time while its discount widened by 0.5%.

Second and third place on the list were also unchanged, albeit with slightly lower yields. European Assets kept its number two spot, with its yield falling from 6% to 5.8% and Henderson High Income kept third place despite its yield falling by 0.1% to 5.6%. 

Other trusts lower down the list saw their yields increase. International Biotechnology, for example, continued to use its capital to boost its dividend, putting its latest yield at 4.5%, a 0.1% increase from three months ago. 

BlackRock World Mining saw the biggest jump in its yield, from 4.3% to 5.5%, putting it in fourth place. Owing to commodity price falls in 2015 and 2016, the trust was forced to cut payouts for both years. However, since 2017 the trust has been able to start growing its dividend payments again.

Other trusts saw their dividend yield increase on the back of share price falls, with Murray International being one example. While the higher yield has partially been the result of a 3% growth in its dividend payout over the past year, a 5.5% fall in its share price over the same period has also boosted the yield.

UK equity trusts continued to be well represented among those with attractive yields. Merchants, which invests in FTSE 100 listed companies, had the highest yield in the UK sector, at 5.4%, a slight increase from three months prior.


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