AIC hails "remarkable resilience" of investment trust dividend growth

Mon, 17th Mar 2025 17:23

(Alliance News) - The London market again has 20 "dividend heroes", investment trusts that have increased their annual dividends for at least 20 years in a row, a report on Monday showed.

The Association of Investment Companies published its updated list after FTSE 100-listed F&C Investment Trust PLC declared a 6.1% hike in its dividend in its results Monday to take its unbroken record to 54 years.

Half of the 20 dividend heroes have increased their dividends for 50 or more consecutive years, the AIC noted.

Topping the list with 58 years of dividend rises are City of London Investment Trust PLC, Bankers Investment Trust PLC and Alliance Witan PLC closely followed by Caledonia Investments PLC with 57 years.

F&C Investment Trust and The Global Smaller Companies Trust PLC have consistently increased their dividends for 54 years followed by Brunner Investment Trust PLC, JPMorgan Claverhouse Investment Trust PLC at 52, and Murray Income Trust PLC and Scottish American Investment Co PLC at 51.

The newest joiner to the "distinguished dividend hero list" is Murray International Trust PLC from the Global Equity Income sector, with 20 consecutive years of dividend increases, the AIC noted.

This brings the list of dividend heroes back up to 20 investment trusts after last year’s merger of Alliance Trust and Witan, becoming Alliance Witan.

Annabel Brodie-Smith, communications director of the AIC said: "Ten dividend hero investment trusts have raised their dividends consecutively every year for more than half a century. In total there are 20 dividend hero investment trusts that have consistently increased their dividends every year for more than 20 years."

She added investment trusts are "particularly suitable" for income investing over the long term.

"They can retain up to 15% of the income they receive each year, and this reserve of income can be used to boost dividends when markets are tough. This allows investment trusts to smooth their flow of dividends and produce these long records of dividend growth," she noted.

She hailed the "dividend heroes" for their "remarkable resilience" during recent and historic high inflationary periods in the 1970s, the recession of the 1990s, the global financial crisis in 2008 and the pandemic.

"Whilst dividends are never guaranteed, investment trusts’ dividend hero track records are exceptional," she added.

By Jeremy Cutler, Alliance News reporter

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