A new recruit to the dividend heroes club

The Association of Investment Companies (AIC) has announced a new addition to its list of dividend heroes – those investment companies that have increased their dividends each year for 20 years or more.

A new recruit to the dividend heroes club

Invesco Income Growth has increased its dividend for the 20th consecutive year, bringing the total number of the AIC’s ‘dividend heroes’ to 21, meaning there are now 21 investment companies which have increased their dividends every year for 20 years or more.

It has been a landmark year for dividend heroes, with the AIC announcing in May that four investment companies had increased their dividends for 50 consecutive years.

Commenting on reaching this milestone Ciaran Mallon, manager of Invesco Income Growth Trust plc, said: “A larger proportion of the UK stock market’s aggregate earnings are being paid out in dividends than ever before, underlining the need for careful selection of companies which have the ability to pay a sustainable and growing dividend over the long term.

“I remain confident that through careful analysis of the companies I invest in, my strategy will fulfil the company’s income and growth objectives. I recognise that this reliable and growing income stream is a key attraction of the company and the regular dividend stream is highly valued by shareholders.”

Annabel Brodie-Smith, communications director of the Association of Investment Companies, said: “It’s a great achievement that 21 investment companies have now increased their dividends for 20 or more consecutive years.

“Investment companies have the unique ability to ‘smooth’ dividends, which means they can store up to 15% of the income they receive each year and use these reserves to boost dividends if times get leaner in the future. With interest rates at an all-time low and inflation increasing, investors remain focused on sources of reliable income.”

To coincide with the announcement, the AIC has issued an updated table of its dividend heroes:

Dividend heroes

Company Sector Number of consecutive years dividend increased Dividend yield (%) at 30 June 2017
City of London Investment Trust UK Equity Income 50 3.9
Bankers Investment Trust Global 50 2.2
Alliance Trust Global 50 1.8
Caledonia Investments Global 50 1.9
F&C Global Smaller Companies Global 47 0.9
Foreign & Colonial Investment Trust Global 46 1.7
Brunner Investment Trust Global 45 2.3
JPMorgan Claverhouse Investment Trust UK Equity Income 44 3.7
Murray Income UK Equity Income 43 4.1
Witan Investment Trust Global 42 1.9
Scottish American Global Equity Income 37 3.1
Merchants Trust UK Equity Income 35 5.1
Scottish Mortgage Investment Trust Global 34 0.8
Scottish Investment Trust Global 33 2.8
Temple Bar UK Equity Income 33 3.3
Value & Income UK Equity Income 29 4.0
F&C Capital & Income UK Equity Income 23 3.3
British & American UK Equity Income 22 8.8
Schroder Income Growth UK Equity Income 21 3.8
Northern Investors Company* Private Equity 21 7.9
Invesco Income Growth UK Equity Income 20 3.5

*Please note Northern Investors Company is winding up

Source: AIC

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