Dividend hero logo

Investment companies have an income advantage which is particularly important during difficult times like these when dividends are under pressure.

Unlike open-ended funds, investment companies don’t have to pay out all the income they receive from their portfolios each year.  They can save up to 15% and tuck it into a revenue reserve.  This means they can hold back some of the income they receive in good years and use it to boost dividends when businesses may be cutting theirs.

This structural benefit has enabled many investment companies to pay consistently rising dividends through both good and bad years for decades, a record that’s unrivalled by open-ended funds.

It’s important to remember that dividends are never guaranteed and so your income from investment companies, like your capital, can fall as well as rise.  It’s the responsibility of investment companies’ independent boards of directors to decide on a dividend strategy that is in the best interests of shareholders.

Dividend heroes

The next generation of dividend heroes

The next generation of dividend heroes are those that have increased their dividends for 10 or more years in a row but fewer than 20.

  CompanyAIC sectorNumber of consecutive years dividend increased
Artemis Alpha TrustUK All Companies19
Murray International TrustGlobal Equity Income19
BlackRock Greater EuropeEurope17
Schroder Oriental IncomeAsia Pacific Equity Income17
Henderson Far East IncomeAsia Pacific Equity Income16
CQS New City High Yield FundDebt - Loans and Bonds16
International Public PartnershipsInfrastructure16
abrdn Asian Income FundAsia Pacific Equity Income15
Fidelity Special ValuesUK All Companies14
Lowland Investment CompanyUK Equity Income14
Law Debenture CorporationUK Equity Income14
Invesco Select Trust - Global Equity Income SharesGlobal Equity Income14
TR Property Investment TrustProperty Securities14
Chelverton UK Dividend TrustUK Equity Income14
Aberforth Smaller CompaniesUK Smaller Companies13
Henderson Opportunities TrustUK All Companies13
Fidelity European TrustEurope13
North American Income TrustNorth America13
Fidelity China Special SituationsChina / Greater China13
Dunedin Income GrowthUK Equity Income12
CT Global Managed Portfolio IncomeFlexible Investment12
CT Private Equity TrustPrivate Equity12
Mid Wynd InternationalGlobal11
Henderson High Income TrustUK Equity & Bond Income11
CT UK High Income TrustUK Equity Income11
Mercantile Investment TrustUK All Companies11
ICG Enterprise TrustPrivate Equity11
Canadian General InvestmentsNorth America10
Henderson International IncomeGlobal Equity Income10
BBGI Global Infrastructure S.A.Infrastructure10
Greencoat UK WindRenewable Energy Infrastructure10
RIT Capital PartnersFlexible Investments10

Source: theaic.co.uk & Morningstar. Companies with the same number of years of consecutive dividend increases are ordered by the date the final dividend is declared. Data as at 14th June 2024.