Find out which 22 investment trusts make the list of the next generation of dividend heroes, having increased their dividends each year for 10 to 20 years.
Investors searching for investment trusts that offer the prospect of consistent dividend growth can choose from an 22-strong list that has been put together by the Association of Investment Companies (AIC).
The AIC's “Next Generation of Dividend Heroes” list comprises trusts that have increased their dividends each year for 10 years or more, with an upper limit of 20 years. The trade body has also revealed the trusts with records of dividend increases that span 20 years and more.
DIVIDEND RESERVES GIVE TRUSTS THE EDGE
Overall, eight out of the 22 trusts hail from the UK equity income sector or the UK smaller companies sector. This highlights the advantages associated with backing a closed-ended income-focused investment company, which can draw on a “reserve” account to bolster income during challenging markets. A total of 15% of income generated by the trust can be stored each year.
A list of 20 investment trusts that have increased their dividends for at least 20 years can be found here.
Next generation dividend heroes
|Company||AIC sector||Number of consecutive years of dividend increases||% yield (at 28/02/19)|
|Perpetual Income & Growth||UK Equity Income||19||4.58|
|Aberdeen Standard Equity Income||UK Equity Income||18||4.88|
|Athelney||UK Smaller Companies||16||3.96|
|TR European Growth||European Smaller Companies||16||2.53|
|BlackRock Smaller Companies||UK Smaller Companies||15||2.11|
|BlackRock Throgmorton Trust||UK Smaller Companies||15||2.04|
|Establishment Investment Trust||Flexible Investment||15||2.91|
|Henderson Smaller Companies||UK Smaller Companies||15||2.62|
|Aberdeen New Dawn||Asia Pacific - Excluding Japan||14||1.86|
|Artemis Alpha Trust||UK All Companies||14||1.79|
|Murray International||Global Equity Income||14||4.39|
|BlackRock Greater Europe||Europe||13||1.73|
|Edinburgh Investment||UK Equity Income||13||4.37|
|Witan Pacific||Asia Pacific - Including Japan||13||1.74|
|Henderson European Focus||Europe||12||2.74|
|Schroder Oriental Income||Asia Pacific - Excluding Japan||12||3.9|
|Henderson Far East Income||Asia Pacific - Excluding Japan||11||6.41|
|HICL Infrastructure||Sector Specialist: Infrastructure||11||4.83|
|International Public Partnerships||Sector Specialist: Infrastructure||11||4.54|
|Standard Life UK Smaller Companies||UK Smaller Companies||11||1.63|
|Aberdeen Asian Income Fund||Asia Pacific - Excluding Japan||10||4.44|
- This article was first published in March 2017, but was last updated on 18 March 2019. Source: AIC and Morningstar.