A new recruit to the dividend heroes
Invesco Income Growth increases its dividend for the 20th consecutive year.
The Association of Investment Companies (AIC) has today announced a new addition to its list of dividend heroes – those investment companies that have increased their dividends each year for 20 years or more.
In its results for the year ending 31 March 2017, Invesco Income Growth Trust marked its 20th year of consecutive dividend increases. With Invesco Income Growth Trust, there are now 21 investment companies which have increased their dividends every year for 20 years or more.
It has been a landmark year for dividend heroes, with the AIC announcing in May that four investment companies had increased their dividends for 50 consecutive years.
Commenting on reaching this milestone Ciaran Mallon, Manager of Invesco Income Growth Trust plc said: “A larger proportion of the UK stock market’s aggregate earnings are being paid out in dividends than ever before, underlining the need for careful selection of companies which have the ability to pay a sustainable and growing dividend over the long term. I remain confident that through careful analysis of the companies I invest in, my strategy will fulfil the company’s income and growth objectives. I recognise that this reliable and growing income stream is a key attraction of the company and the regular dividend stream is highly valued by shareholders.”
Annabel Brodie-Smith, Communications Director of the Association of Investment Companies said: “It’s a great achievement that 21 investment companies have now increased their dividends for 20 or more consecutive years. Investment companies have the unique ability to ‘smooth’ dividends, which means they can store up to 15% of the income they receive each year and use these reserves to boost dividends if times get leaner in the future. With interest rates at an all-time low and inflation increasing, investors remain focused on sources of reliable income.”
To coincide with the announcement, the AIC has issued an updated table of its dividend heroes:
Dividend heroes
|
Company |
AIC sector |
Number of consecutive years dividend increased |
Dividend yield (%) at 30 June 2017 |
|---|---|---|---|
|
City of London Investment Trust |
UK Equity Income |
50 |
3.9 |
|
Bankers Investment Trust |
Global |
50 |
2.2 |
|
Alliance Trust |
Global |
50 |
1.8 |
|
Caledonia Investments |
Global |
50 |
1.9 |
|
F&C Global Smaller Companies |
Global |
47 |
0.9 |
|
Foreign & Colonial Investment Trust |
Global |
46 |
1.7 |
|
Brunner Investment Trust |
Global |
45 |
2.3 |
|
JPMorgan Claverhouse Investment Trust |
UK Equity Income |
44 |
3.7 |
|
Murray Income |
UK Equity Income |
43 |
4.1 |
|
Witan Investment Trust |
Global |
42 |
1.9 |
|
Scottish American |
Global Equity Income |
37 |
3.1 |
|
Merchants Trust |
UK Equity Income |
35 |
5.1 |
|
Scottish Mortgage Investment Trust |
Global |
34 |
0.8 |
|
Scottish Investment Trust |
Global |
33 |
2.8 |
|
Temple Bar |
UK Equity Income |
33 |
3.3 |
|
Value & Income |
UK Equity Income |
29 |
4.0 |
|
F&C Capital & Income |
UK Equity Income |
23 |
3.3 |
|
British & American |
UK Equity Income |
22 |
8.8 |
|
Schroder Income Growth |
UK Equity Income |
21 |
3.8 |
|
Northern Investors Company* |
Private Equity |
21 |
7.9 |
|
Invesco Income Growth |
UK Equity Income |
20 |
3.5 |
*Please note Northern Investors Company is winding up
Source: AIC
-Ends-
Follow us on Twitter @AICPRESS
Notes
- Dividend heroes list correct as at 30 June 2017.
- The Association of Investment Companies (AIC) was founded in 1932 to represent the interests of the investment trust industry – the oldest form of collective investment. Today, the AIC represents a broad range of closed-ended investment companies, incorporating investment trusts and other closed-ended investment companies and VCTs. The AIC’s members believe that the industry is best served if it is united and speaks with one voice. The AIC’s mission statement is to help members add value for shareholders over the longer term. The AIC has 349 members and the industry has total assets of approximately £168 billion.
- Disclaimer: The information contained in this press release does not constitute investment advice or personal recommendation and it is not an invitation or inducement to engage in investment activity. You should seek independent financial and, if appropriate, legal advice as to the suitability of any investment decision. Past performance is not a guide to future performance. The value of investment company shares, and the income from them, can fall as well as rise. You may not get back the full amount invested and, in some cases, nothing at all.
