36 Investment companies with inflation-busting income and growth

AIC research reveals companies which have grown both dividends and share price by more than the CPI over the past five years.

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As savers prepare to weather the storm of rising inflation, research from the Association of Investment Companies (AIC) demonstrates that 36 investment companies have grown both their dividends and their share price by more than the Consumer Prices Index (CPI) over the past five years.

The 36 companies have increased their dividends over the last five years by more than CPI, which is 2.5% on an annualised basis over that period, as well as delivering an annualised share price return excluding dividends of more than 2.5%. None of the companies has cut its annual dividends over this time and all pay a yield of at least 2%.

Annabel Brodie-Smith, Communications Director, Association of Investment Companies (AIC), said: “Investors are understandably concerned about rising inflation and many investment companies are focused on growing shareholders’ income and capital in real terms. It’s encouraging to see that 36 investment companies, from a wide range of sectors, have beaten inflation over the past five years, both in terms of their annual dividend payments and their share price returns. However, the past is not a guide to the future and inflation-busting returns are far from guaranteed. Investors should do their own research, and if in doubt, consult a financial adviser.”

Investment companies with 5-year dividend growth of at least 2.5% p.a., 5-year share price returns excluding dividends of at least 2.5% p.a. and a yield of at least 2%.

Source: AIC using Morningstar (as at 02/02/22). AIC members only.

Investment company

AIC sector

Dividend yield
(%)

5-year dividend growth
(% p.a.)

5-year
share price return
(% p.a.)

VPC Specialty Lending Investments

Debt – Direct Lending

8.44

10.80

4.75

Greencoat UK Wind

Renewable Energy Infrastructure

5.38

2.52

4.24

JPMorgan Russian Securities

Country Specialist

5.10

20.11

4.50

Apax Global Alpha

Private Equity

4.81

22.43

10.22

Merchants

UK Equity Income

4.69

2.53

3.43

JPMorgan Asia Growth & Income

Asia Pacific Equity Income

4.51

45.11

5.97

Invesco Asia

Asia Pacific Equity Income

4.31

32.84

7.25

Henderson International Income

Global Equity Income

4.14

6.26

4.35

Lindsell Train

Global

4.14

42.18

15.70

BlackRock Sustainable American Income

North America

4.01

11.22

4.96

Invesco Perpetual UK Smaller Companies

UK Smaller Companies

4.00

6.20

7.49

Schroder Oriental Income

Asia Pacific Equity Income

3.95

4.32

3.13

Montanaro UK Smaller Companies

UK Smaller Companies

3.91

22.51

4.58

JPMorgan Global Growth & Income

Global Equity Income

3.67

32.68

8.68

Ecofin Global Utilities and Infrastructure

Infrastructure Securities

3.61

32.77

9.10

North American Income

North America

3.61

8.67

3.74

Momentum Multi-Asset Value

Flexible Investment

3.58

2.53

3.24

Law Debenture Corporation

UK Equity Income

3.37

11.16

5.73

Diverse Income Trust

UK Equity Income

3.33

6.02

4.47

Templeton Emerging Markets

Global Emerging Markets

3.33

18.16

6.11

BMO Private Equity

Private Equity

3.31

7.17

10.68

TR Property

Property Securities

2.93

11.20

7.85

Invesco Select Global Equity Income

Global Equity Income

2.92

3.42

5.77

Mercantile

UK All Companies

2.68

9.28

7.16

Tritax Big Box REIT

Property - UK Logistics

2.64

2.52

8.24

Polar Capital Global Financials

Financials

2.48

4.39

5.24

Standard Life Private Equity

Private Equity

2.42

20.29

13.82

Aberforth Smaller Companies

UK Smaller Companies

2.41

5.18

4.24

JPMorgan MidCap

UK All Companies

2.40

7.03

5.62

Aberdeen Standard Asia Focus

Asia Pacific Smaller Companies

2.34

7.39

6.14

Witan

Global

2.26

9.90

5.98

ICG Enterprise

Private Equity

2.20

16.89

13.51

Fidelity Special Values

UK All Companies

2.18

12.51

5.11

Henderson European Focus

Europe

2.09

4.63

7.20

Henderson Smaller Companies

UK Smaller Companies

2.09

9.63

9.34

Fidelity European

Europe

2.01

14.31

9.89

 

-ENDS-

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Notes to editors

  1. 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 360 members and the industry has total assets of approximately £277 billion.
  2. 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.
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