LONDON (Alliance News) - Seneca Global Income & Growth Trust PLC on Friday said it plans to "at least" maintain quarterly dividend payments at 1.52 pence per share in the year ending April 2017, barring unforeseen circumstances.
The trust paid a fourth interim dividend of 1.52p on Friday. When added to the three preceding interim dividends, that produced a total dividend of 5.93p per share for the year ended April 30, 2016, an increase of 4.6% on the prior year's 5.67p.
"At a time when UK equity income is under considerable pressure as many very large companies have cut or have signalled their intention to cut their dividends, your company seems particularly well placed in that its income is generated from a wide variety of sources. Indeed, less than 30% of its income derives from UK equities and even that is predominately from mid-sized companies rather than the very large," Chairman Richard Ramsay said in a statement.
The trust reported a net asset value total return of 0.8% in the year ended April 30. The benchmark 3-month London Interbank Offered Rate plus 3.0% returned 3.7%.
The trust, which considers it "more appropriate" to measure performance over a longer time frame, said it generated a NAV total return for the three years ended April 30 of 18.4% compared to 11.2% from the benchmark.
"This success has been recognised in a variety of ways," Ramsay said. The shares moved to a small premium at the end of the financial year form a discount to net asset value of more than 7% at the start.
"The resulting 9.3% share price total return is indicative of the increasing recognition that your company has received from both investors and from independent observers," Ramsay said.
Shares in Seneca Global Income & Growth were down 0.1% at 146.00p Friday.
By Samuel Agini; firstname.lastname@example.org; @samuelagini
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