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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.

  Company AIC sector Number of consecutive years dividend increased
   Artemis Alpha Trust UK All Companies 19
  Murray International Trust Global Equity Income 18
  BlackRock Greater Europe Europe 17
  Schroder Oriental Income Asia Pacific Equity Income 17
  Henderson Far East Income Asia Pacific Equity Income 16
  CQS New City High Yield Fund Debt - Loans and Bonds 16
  International Public Partnerships Infrastructure 15
  abrdn Asian Income Fund Asia Pacific Equity Income 14
  Fidelity Special Values UK All Companies 14
  Lowland Investment Company UK Equity Income 13
  Law Debenture Corporation UK Equity Income 13
  Invesco Select Trust - Global Equity Income   Shares Global Equity Income 13
  TR Property Investment Trust Property Securities 13
  Chelverton UK Dividend Trust UK Equity Income 13
  Aberforth Smaller Companies UK Smaller Companies 12
  Henderson Opportunities Trust UK All Companies 12
  Fidelity European Trust Europe 12
  North American Income Trust North America 12
  Dunedin Income Growth UK Equity Income 12
  CT Global Managed Portfolio Income Flexible Investment 12
  Fidelity China Special Situations China / Greater China 12
  Lindsell Train Investment Trust Global 12
  CT Private Equity Trust Private Equity 11
  Mid Wynd International Global 11
  Henderson High Income Trust UK Equity & Bond Income 11
  CT UK High Income Trust UK Equity Income 10
  Mercantile Investment Trust UK All Companies 10
  ICG Enterprise Trust Private Equity 10
  Canadian General Investments North America 10
  Henderson International Income Global Equity Income 10

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 30th November 2023.