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Three Elite Rated Investment Trusts have been named ‘Dividend Heroes*’ by the Association of Investment Companies (AIC).
The City of London Investment Trust is one of just three investment trusts to have increased its dividend for 50 consecutive years. A further 17 trusts make up the full list of dividend heroes, having increased theirs for 20 years or more.
Elite Rated F&C Global Smaller Companies and Elite Rated Scottish Mortgage Investment Trust were also named Dividend Heroes, having increased their dividends for the past 46 years and 33 years respectively.
In a separate list of ‘next generation dividend heros’ made up of investment trusts with between 10 and 19 years of consecutive dividend rises, Elite Rated Murray International and Schroder Oriental Income made an appearance.
Job Curtis, manager, City of London Investment Trust, said: “City of London’s record of growing its dividend every year for 50 years has been achieved both by investing in good companies and also through the investment trust structure. In the good years for dividends, we add to our revenue reserves which we are then able to use in more difficult periods. Indeed, in 7 of the 25 years during my period as fund manager, we have dipped into revenue reserves to help grow the dividend.
“In our view, the dividend yield from UK equities remains attractive compared with the main alternatives and dividend growth has been augmented by the fall in the value of sterling over the last nine months.”
*The Dividend Heroes list is correct as at 13th March 2017