30 investment trusts make up next generation of dividend heroes

Schroder Oriental Income and BlackRock Greater Europe lead the list, both having increased their annual dividends for 19 consecutive years. They are closely followed by CQS New City High Yield Fund and Henderson Far East Income, which both have an unbroken record of 18 years of dividend increases. Two investment companies have 17 years of dividend increases, International Public Partnerships and Aberdeen Asian Income Fund.

Annabel Brodie-Smith, Communications Director of the Association of Investment Companies (AIC), said: “There are 30 investment trusts that make up our next generation of dividend heroes, having consistently increased their dividends for more than ten years but less than 20. Half of these next generation trusts yield more than the Bank of England’s base rate of 3.75%. They cover a wide range of sectors from equities to debt, infrastructure and property. New members of the club are Foresight Environmental Infrastructure and Utilico Emerging Markets, both celebrating their tenth annual dividend increase – a great achievement in what has been a turbulent decade for markets.

“The list is testament to the many advantages investment trusts offer for income seekers. They are able to smooth dividends over time because they can hold back income from their portfolio and use this to boost dividends in leaner years. Investment trusts can also pay income out of their capital profits if they choose, and their structure is particularly suitable for high yielding but hard-to-sell assets such as infrastructure and property.”

The next generation of dividend heroes

^{Source: theaic.co.uk / Morningstar. Data at 19/03/26.} 

Comments from new joiners

Charlie Wright, Co-Lead Investment Manager of Foresight Environmental Infrastructure, said: “Since launch, the trust’s board has consistently prioritised delivering a steady and growing income for shareholders. We are therefore delighted to have been recognised as part of the next generation of dividend heroes. The dividend remains a key attraction for our investors, particularly retail shareholders, and we are on track to deliver our 11th consecutive year of dividend growth, with a target dividend of 7.96 pence per share and projected dividend cover for the current year of between 1.2 and 1.3 times.

“The trust offers investors access to a diversified portfolio of otherwise hard-to-reach private environmental infrastructure assets that deliver stable returns, predictable income and the opportunity for capital growth. We are the most diversified investment trust within our peer group, which means our portfolio is less exposed to unpredictable weather patterns and volatile energy prices whilst still benefitting from infrastructure-like characteristics, such as inflation protection and stable cash flows.”

Jacqueline Broers, Co-Fund Manager of Utilico Emerging Markets Trust, said: “The dividends that Utilico Emerging Markets Trust declares each quarter are an outcome of our actively managed, bottom-up investment approach. We invest in listed infrastructure and utility companies which are crucial to the growth and development of many emerging markets. These companies generate stable, growing cash flows, often underpinned by regulatory frameworks, which supports our ability to pay consistently growing dividends.”

Views from long-standing next generation trusts

Ian “Franco” Francis, Portfolio Manager of CQS New City High Yield Fund, said: “Maintaining a progressive dividend is a core objective for our trust – our shareholders expect us to deliver a reliable and rising income stream for their investment portfolios. Our approach is underpinned by careful credit selection and a focus on issuers whose cash generation supports sustainable distributions. Market conditions will inevitably shift, but the depth of the team, with its discipline and focus on diversification, continue to provide the resilience and expertise needed to meet this objective.

“For income investors, the high yield corporate bond market offers an attractive combination of a high income and a broad range of investment opportunities across a range of sectors. The trust’s strategy remains focused on identifying creditworthy companies capable of supporting a dependable income profile for our shareholders over the long term.”

Sat Duhra, Manager of Henderson Far East Income, said: “The increase in Henderson Far East dividends has broadly tracked the increasing dividends from the Asia Pacific region, which has continued to demonstrate a long track record of dividend growth. In fact, dividend increases have accelerated in recent years from a wide-ranging corporate reform agenda in markets such as South Korea, China and Singapore, where regulators are actively seeking higher shareholder returns from companies.

“The Asia Pacific region generates a high level of income, but it is the combination of growth and income that is unique. It is the fastest growing region globally but has also maintained a strong track record of dividend growth over the last two decades. The unique exposures to technology supply chains, financial inclusion, infrastructure and corporate reform are some of the most attractive structural growth stories in the world, yet they also provide a consistent dividend income. This makes the region full of compelling investment opportunities.”

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Notes to editors

1. The Association of Investment Companies (AIC) represents a broad range of investment trusts and VCTs, collectively known as investment companies. The AIC’s vision is for closed-ended investment companies to be understood and considered by every investor. The AIC has 275 members and the industry has total assets of approximately £270 billion.
2. For more information about the AIC and investment trusts, visit the AIC’s website.
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