Investment Trust dividend heroes

Investment trusts with a long track record of increasing dividends

The Association of Investment Companies (AIC) has published a list of the investment company sector’s dividend heroes, who have had a strong start to the year.

In January, Bankers Investment Trust accomplished its 48th year of consecutive dividend increases, whilst two venerable investment companies had similarly strong stories to tell in February: Brunner Investment Trust announced its 43rd consecutive annual dividend increase, whilst Witan investment Trust become the 10th investment company to achieve a 40th consecutive year dividend increase. By coincidence, the company recently celebrated its 10th anniversary of being multi-manager.

Yesterday, the Foreign & Colonial Investment Trust announced another dividend increase – its 44th year of consecutive dividend payments, and this Friday will see Alliance Trust release its final results. If Alliance Trust is able to announce another dividend increase, this will be its 48th consecutive year of dividend increases, putting it at level pegging with City of London Investment Trust and Bankers Investment Trust.

All of these companies are among some of the longest-established in the sector, but it’s not just the golden oldies with such enviable track-records: JPMorgan Claverhouse has raised its dividend each year for the last 42 years of its 52 year history. Value & Income Investment Trust has made 27 annual dividend increases in a row, out of a 34 year history.
Annabel Brodie-Smith, Communications Director, Association of Investment Companies (AIC) said: “There’s nothing more reassuring to investors than a company with a solid history of dividend increases, and the investment company sector’s track record here is second to none.  Through the good times and the bad, many investment companies have been able to increase their dividend every year for decades because they have the unique ability to save some of the income they receive each year for tougher times; a facility known as dividend smoothing.”

Dividend heroes

 

Company Sector Number of consecutive years dividend Increased Launch date
City of London Investment Trust UK Equity Income 48 01/01/1891
Bankers Investment Trust Global 48 13/04/1888
Alliance Trust Global 47* 21/04/1888
Caledonia Investments Global 47 18/07/1960
Foreign & Colonial Investment Trust Global 44 01/01/1868
F&C Global Smaller Companies Global 44 15/02/1889
Brunner Investment Trust Global 43 01/01/1927
JPMorgan Claverhouse Investment Trust UK Equity Income 42 01/01/1963
Murray Income UK Equity Income 41 07/06/1923
Witan Investment Trust Global 40 17/02/1909
Scottish American Global Equity Income 35 31/12/1873
Merchants Trust UK Equity Income 32 16/02/1889
Scottish Mortgage Investment Trust Global 32 01/01/1909
Scottish Investment Trust Global 31 27/07/1887
Temple Bar UK Equity Income 31 30/12/1926
Value & Income UK Equity Income 27 31/07/1981

*Alliance Trust final results are out on Friday, March 6 2015. If another dividend increase is announced, Alliance Trust will have a 48 year record of consecutive dividend increases.

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Categories: Funds, News

About Author

Christopher Menon

Every Investor Editor Chris Menon is a financial journalist who has written regularly for national newspapers, magazines and websites about personal finance, with particular emphasis on investing.