‘Next generation’ investment trust dividend heroes revealed

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

Two UK equity income trusts appear at the top of the list with Perpetual Income & Growth and Standard Life Equity Income in first and second spot, respectively.

Smaller companies investment strategies also make an appearance. BlackRock's Smaller Companies and Throgmorton trusts, claim 15 years of dividend growth, while Athelney boasts 16 years’ worth.

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.

- Nearly one in two investment trusts pay quarterly dividends

A list of 20 investment trusts that have increased their dividends for at least 20 years can be found here.

Three trusts have reached the impressive milestone of 50 years of consecutive dividend increases. The trusts are: City of London, Bankers and Alliance Trust

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 EuroTrust Europe 15 2.94
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.

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