26 Nov 2020 16:51
To: RNS
From: BMO UK High Income Trust PLC
Date: 26 November 2020
LEI: 213800B7D5D7RVZZPV45
Dividend and Capital Repayment
The Board of BMO UK High Income Trust PLC announces a third quarter dividend in respect of the financial year to 31 March 2021 of 1.29 pence per Ordinary share. This dividend will be paid on 5 February 2021 to Ordinary shareholders on the register on 8 January 2021.
A third quarter capital repayment of 1.29 pence per B share will be paid on 5 February 2021 to B shareholders on the register on 8 January 2021. Capital repayments on B shares are paid at the same time and in an amount equal to each dividend paid on an Ordinary share.
This represents an unchanged dividend / capital repayment from the third quarter of the prior financial year to 31 March 2020.
As referenced when the first two quarterly dividends and capital repayments were announced; as a consequence of COVD-19 many companies (including a number of those held within the Company's investment portfolio) chose to cancel, delay or significantly reduce the dividend payments they make to shareholders. Furthermore, there remains a low level of visibility as to when companies may be in a position to commence paying dividends once more and at what level they may choose to do so. This position will become clearer as the financial year progresses.
At 31 March 2020, the Company had a revenue reserve of approximately 5.7p per Ordinary share, equivalent to 109% of the total annual dividend of 5.21p per Ordinary share paid in respect of the year to 31 March 2020. It is probable that the Company's dividend payments for the current financial year will not be covered by net revenue earned and this revenue reserve can and will be used to supplement revenue earnings in the current period.
The normal pattern for the Company is to pay four quarterly interim distributions per financial year.
The first three quarterly distributions are each 1.29 pence per share and in the absence of unforeseen circumstances, the Company currently intends that the aggregate distribution for the financial year to 31 March 2021 will be at least 5.21 pence per share (Financial year to 31 March 2020: 5.21 pence per share).
Based on these intended distributions, the dividend yield on an Ordinary share was 6.0 per cent based on the Ordinary share price of 87 pence as at 25 November 2020, and the distribution yield on a B share was 5.9 per cent based on the B share price of 88 pence on the same date. These yields compare favourably with the yield on the FTSE All-Share Index of 3.7 per cent at the same date. For those shareholders that hold units (each comprising three Ordinary shares and one B share) the distribution yield on this unit holding was 6.1 per cent based on a unit price of 342 pence as at 25 November 2020.
Enquiries:
Philip Webster, Fund Manager
BMO Investment Business Limited
Tel: 0207 628 8000