The half centuries keep on coming

Caledonia is the latest investment company to announce 50 years of consecutive dividend increases.

2017 has been a golden year for dividend heroes, with the Association of Investment Companies (AIC) announcing that three investment companies had reached 50 years of consecutive increases earlier this year.

Today, the half century club has gained another member as Caledonia has announced its final results for the year ending 31 March 2017; making it the fourth investment company to have increased its dividends every year for 50 years.

Commenting on reaching this milestone, William Wyatt, Chief Executive of Caledonia Investments plc said: “We are delighted to announce an increase of 4.2% in our total dividends for the year. This will be the 50th consecutive year of annual increases and forms a vital part of our return to shareholders. Caledonia’s strategy is focused on its maintenance and gradual increase over the long run.

“In addition, we are proposing a special dividend of 100p per share, payable alongside the final dividend. We believe it appropriate to augment the long term yield offered to shareholders by our ordinary dividend through payment of occasional special dividends when the company’s long term business model delivers cash in excess of our immediate strategic plans.”

Annabel Brodie-Smith, Communications Director, Association of Investment Companies said: “It’s an achievement to now have four investment companies that have consecutively increased their dividends for 50 years. With interest rates at an all-time low, investors remain hungry for income and investment companies have the unique ability to ‘smooth’ dividends, meaning they can boost dividends from their reserves when times get tough.”

To coincide with Caledonia’s announcement, the AIC has issued an updated table of its dividend heroes.

Dividend heroes

Company

AIC sector

Consecutive number of years dividend increased

City of London Investment Trust

UK Equity Income

50

Bankers Investment Trust

Global

50

Alliance Trust

Global

50

Caledonia Investments

Global

50

F&C Global Smaller Companies

Global

46

Foreign & Colonial Investment Trust

Global

46

Brunner Investment Trust

Global

45

JPMorgan Claverhouse Investment Trust

UK Equity Income

44

Murray Income

UK Equity Income

43

Witan Investment Trust

Global

42

Scottish American

Global Equity Income

37

Merchants Trust

UK Equity Income

35

Scottish Mortgage Investment Trust

Global

34

Scottish Investment Trust

Global

33

Temple Bar

UK Equity Income

33

Value & Income

UK Equity Income

29

F&C Capital & Income

UK Equity Income

23

British & American

UK Equity Income

22

Schroder Income Growth

UK Equity Income

21

Northern Investors Company*

Private Equity

21

*Please note Northern Investors Company is winding up

Source: AIC

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Notes

  1. Dividend heroes list correct as at 25 May 2017.
  2. 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 345 members and the industry has total assets of approximately £164 billion.
  3. 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.