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.
